Key facts
- HYPE token reached a new all-time high of $75.96.
- Cumulative net inflows for HYPE ETFs have reached nearly $172 million since their May debut.
- Bitcoin ETFs have seen outflows of approximately $5.6 billion over the same period.
- Bitwise's BHYP ETF leads with $106.6 million in net inflows.
- Institutional interest in HYPE is driven by protocol revenue generation and fee structure.
- SpaceX's SPCX perpetual on Hyperliquid attracted $1.4 billion in volume in a single session.
The HYPE token has surged to a new all-time high, extending its strong performance amid growing institutional interest in its underlying protocol. The token's price has climbed over 73% in the past month and 196% year-to-date, reaching $75.96 on Tuesday morning.
This momentum is largely fueled by the successful launch of three new Hyperliquid Exchange-Traded Funds (ETFs) in May, which have collectively attracted nearly $172 million in net inflows. This contrasts sharply with Bitcoin ETFs, which have experienced outflows of approximately $5.6 billion during the same period, highlighting a shift in institutional preference towards protocols generating real fees.
Bitwise's BHYP ETF is leading the pack with $106.6 million in net inflows, followed by 21Shares' THYP with $60 million and Grayscale's HYPG with $8.6 million. The cumulative trading volume across these three products has approached $900 million.
Institutional investors are reportedly treating HYPE as a high-growth tech equity, prioritizing its fee-generating architecture and underlying token over speculative, non-yielding assets. This conviction is supported by Hyperliquid's unique Assistance Fund (AF) mechanism, which directs 97% to 99% of trading fees into token buybacks, creating a direct link between trading volume and asset demand. Furthermore, a partnership with Coinbase ensures $5 billion in USDC reserves earn a 4% yield, with 90% of that yield reinvested into the AF, compounding the protocol's liquidity advantage.
The platform's ability to generate fees from diverse sources, including commodities, equities, and pre-IPO markets, has also captured attention. Notably, SpaceX's SPCX perpetual contract, launched via Hyperliquid's HIP-3 framework, attracted $1.4 billion in volume in a single session, underscoring the platform's utility beyond traditional crypto perpetuals.