HYPE funds have turned to inflows: what's behind the trend shift after three weeks of outflows
Spot funds for Hyperliquid (HYPE) recorded net inflows of $2.84 million for the week ending August 7. This is the first positive result after three consecutive weeks of capital outflows, which could signal a shift in institutional investor sentiment.
The reversal occurred against a backdrop of sluggish performance that had previously drawn the attention of analysts at major banks. Cumulative net inflows since the launch of these products have risen 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 entered the market in mid-May and steadily attracted capital for the first few weeks. However, momentum weakened noticeably over the past month. Over three weeks, investors withdrew $30.6 million from HYPE ETFs, with the peak outflow occurring during the week of July 27-31, when losses reached $14.7 million. The Bitwise BHYP fund made the largest contribution to the negative trend, posting the most significant outflow among all products tied to this asset.
Interestingly, the weakening of inflows coincided with a decline in the token's price itself. In late July, HYPE began to slide from just above $60 and dropped to $55 in the first days of August. At the time of analysis, the asset was trading around $54.75, losing roughly 3% over the day and 29% from its record high of $76.87 reached on June 16.
Performance of other crypto ETFs
HYPE's recovery occurred amid the return of significant capital to all major crypto funds. During the week of August 3-7, total inflows across the segment approached $1.1 billion. Bitcoin funds attracted $853.5 million, fully offsetting the $61.5 million outflow from the previous week. Ethereum funds added $244.9 million — the best result since mid-April.
However, smaller products based on other altcoins posted modest results. Investors poured just $145,000 into Solana funds, compared to $7.2 million two weeks earlier. XRP funds added only $1 million after an inflow of $14.9 million the prior week.
This distribution of strength points to clear concentration. Investors are directing fresh capital primarily into Bitcoin and Ethereum while trimming positions in smaller cryptocurrencies. The modest inflow into HYPE ended the fund's most challenging period since launch, but the sustainability of this recovery has yet to be tested.
My take: the return of inflows into HYPE is a positive but cautious signal. Given that the bulk of capital is flowing into BTC and ETH, the recovery of altcoin funds could prove short-lived. Investors should monitor HYPE's price action and overall risk appetite in the market before betting on a sustained trend reversal.