Hyper-liquidation pause: HYPE funds record a reversal after three weeks of capital outflow
Spot exchange-traded funds on Hyperliquid (HYPE) have finally emerged from a prolonged phase of selling pressure. In the week ending August 7, these instruments saw $2.84 million in net inflows, marking the end of a three-week streak of outflows. This is a significant signal, pointing to a possible stabilization of institutional investor interest in this asset.
Total inflows since the products' launch have now reached $280.8 million, underscoring HYPE's long-term potential despite recent volatility. The reversal came amid warnings of weak momentum from analysts at major financial institutions, including JPMorgan. They linked the cooling interest to intensifying competition among new crypto ETFs, which, however, did not prevent capital from returning.
Inflows into HYPE ETFs: details of the three-week decline
Recall that HYPE funds were launched in mid-May and showed steady inflows in the first few weeks. However, over the past month, momentum has sharply weakened. Over three weeks, investors withdrew $30.6 million from HYPE ETFs, with the peak outflow occurring in the week of July 27-31, when losses reached $14.7 million. The main source of pressure was the Bitwise BHYP fund, which showed the most negative performance among all products.
The price behavior of the HYPE token kept pace with capital flows. At the end of July, the asset's value began to decline from just above $60 and dropped to $55 by the first days of August. At the time of analysis, the token was trading around $54.75, losing approximately 3% in a day and 29% from its all-time high of $76.87, reached on June 16. This is a classic correction after overheating, but the return of inflows could be the first sign of a bottom forming.
Market context: concentration on leaders
HYPE's recovery coincided with a massive return of capital to all major crypto funds. In the week of August 3-7, total inflows in the segment approached $1.1 billion. Bitcoin (BTC) funds attracted $853.5 million, fully offsetting the $61.5 million outflow from the previous week. Ethereum (ETH) funds 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 (SOL) funds, compared to $7.2 million two weeks earlier. XRP (XRP) funds received $1 million after an inflow of $14.9 million the previous week. This distribution of strength points to a clear concentration: investors prefer to channel fresh capital into Bitcoin and Ethereum while reducing positions in less liquid assets. Nevertheless, even modest inflows into HYPE end the most difficult period for the fund since its launch.
My expert assessment: The three-week outflow was more of a correction than a trend reversal. The return of capital amid a general market revival indicates that HYPE is perceived as a niche but viable asset. However, for sustainable growth, the token's price needs to establish itself above $60 — otherwise, the current inflow could prove to be just a temporary respite before a new wave of pressure.