Hyperliquid funds have turned around: inflow after three weeks of outflow signals a shift in sentiment
Spot funds for Hyperliquid (HYPE) have finally emerged from a prolonged outflow streak. In the week ending August 7, the products recorded a net inflow of $2.84 million. This is the first positive result in three weeks, indicating a possible recovery in institutional investor interest in this asset.
The reversal occurred against a backdrop of sluggish dynamics that had previously drawn the attention of analysts at major banks. The cumulative net inflow since the funds' launch has risen to $280.8 million, confirming the product's long-term potential despite short-term fluctuations.
Inflow into HYPE ETF after three weeks of outflows
HYPE funds entered the market in mid-May and initially demonstrated steady capital inflows. 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 main source of pressure was the Bitwise BHYP fund, which posted the most significant negative result.
The decline in interest coincided with weakening price dynamics of the token itself. In late July, HYPE began correcting 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 approximately 3% in a day and 29% from its record high of $76.87 reached on June 16.
Dynamics of other crypto ETFs
HYPE's recovery aligns with the broader return of large capital to crypto funds. In the week from August 3 to 7, the total inflow across the segment approached $1.1 billion. Bitcoin funds (BTC) attracted $853.5 million, fully offsetting the $61.5 million outflow from the previous week. Ethereum funds (ETH) added $244.9 million — the best result since mid-April.
However, smaller products based on other altcoins showed modest results. Investors poured only $145,000 into Solana funds (SOL), compared to $7.2 million two weeks earlier. XRP funds (XRP) added $1 million after an inflow of $14.9 million the previous week.
Such capital concentration suggests that investors prefer to hedge their bets by placing fresh funds into liquid and proven assets — Bitcoin and Ethereum — while reducing positions in smaller cryptocurrencies. Nevertheless, the modest inflow into HYPE ended the most challenging period for the fund since its launch, which could serve as a starting point for a new growth phase.
My view: the return of inflows into HYPE is a positive but cautious signal. Given the overall capital concentration in BTC and ETH, the sustainability of this recovery will depend on Hyperliquid's ability to retain investor interest amid fierce competition. If the token's price continues to consolidate above $55, we may see further improvement in flows.