Hyperliquid flows reverse: spot HYPE funds broke the streak of outflows
Spot exchange-traded funds on Hyperliquid (HYPE) recorded net capital inflows for the week ending August 7. According to my data, $2.84 million flowed into the funds, marking the end of a three-week streak of outflows. This is an important signal indicating a possible stabilization of institutional investor interest in this asset.
Inflows into HYPE ETF after three weeks of outflows
Let me remind you that HYPE-based products were launched in mid-May and initially demonstrated steady capital inflows. However, over the past month, the dynamics changed sharply. 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 main contributor to the negative dynamics was the Bitwise BHYP fund, which posted the worst result among all products in this category.
I attribute the weakening interest to growing competitive pressure in the altcoin-ETF segment. The price dynamics of the HYPE token itself mirrored capital flows: in late July, the asset's value began to decline from just above $60 and dropped to $55 in the first days of August. At the time of analysis, the token was trading around $54.75, losing approximately 3% over the day and 29% from the record high of $76.87 reached on June 16.
Dynamics of other crypto ETFs
The recovery of HYPE coincided with the return of significant capital to all major crypto funds. For the week of August 3-7, total inflows across the segment approached $1.1 billion. Bitcoin (BTC) funds attracted $853.5 million, fully offsetting the outflow of $61.5 million the previous week. Ethereum (ETH) funds added $244.9 million — the best result since mid-April.
Smaller products based on other altcoins, on the contrary, showed modest results. Investors poured only $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 of strength indicates concentration. Investors directed fresh capital into Bitcoin and Ethereum but reduced positions in smaller cryptocurrencies. The modest inflow into HYPE ended the fund's most difficult period since its launch.
My comment: Although the return to inflows is a positive sign, the volume of $2.84 million is extremely small compared to the scale of previous outflows. This is more a signal of stabilization than the start of a new growth phase. For a confident recovery of HYPE, not only an improvement in the macroeconomic backdrop will be required, but also a reversal in the price dynamics of the token itself, which remains under pressure for now.