HYPE funds have turned toward inflows: what's behind the trend shift
Spot funds for Hyperliquid (HYPE) recorded net inflows of $2.84 million in the week through August 7. This is the first positive result after three consecutive weeks of capital outflows, signaling a possible shift in sentiment among institutional investors.
The reversal came amid the weak dynamics previously noted by JPMorgan analysts. Cumulative net inflows since the products' launch have grown to $280.8 million, confirming sustained long-term interest in the asset despite short-term corrections.
Inflows into HYPE ETF after three weeks of outflows
HYPE funds were launched in mid-May and consistently attracted capital for the first few weeks. However, momentum weakened sharply over the past month. Over three weeks, investors withdrew $30.6 million from HYPE ETFs, with the peak outflow occurring between July 27 and 31, when losses reached $14.7 million. The brunt fell on Bitwise BHYP — this fund posted the largest negative result.
JPMorgan strategist Nikolaos Panigirtzoglou attributed the waning interest to growing competition in the segment. The price dynamics of the HYPE token mirrored capital flows: in late July, the cryptocurrency's value began declining from just above $60 and dropped to $55 in the first days of August. At the time of analysis, the token was trading near $54.75, down roughly 3% over the day and 29% since reaching its record high of $76.87 on June 16.
Dynamics of other crypto ETFs
The HYPE recovery coincided with the return of significant capital to all major crypto funds: in the week from August 3 to 7, total inflows across the segment approached $1.1 billion. Bitcoin (BTC) funds attracted $853.5 million, fully offsetting the $61.5 million outflow from the prior week. Ethereum (ETH) funds added $244.9 million — the best result since mid-April.
Smaller products based on other altcoins, by contrast, showed more modest results. Investors poured just $145,000 into Solana (SOL) funds, compared to $7.2 million two weeks earlier. XRP funds (XRP) added $1 million after an inflow of $14.9 million the previous week.
This distribution points to concentration. Investors directed fresh capital into Bitcoin and Ethereum but trimmed positions in smaller cryptocurrencies. The modest inflow into HYPE capped the fund's most difficult period since its launch.
My view: the return of inflows into HYPE is a positive but cautious signal. It does not yet offset previous losses, and it is too early to speak of a full reversal. The key factor will remain Hyperliquid's ability to sustain interest amid BTC and ETH dominance in institutional portfolios.