Flows across crypto investment products are showing clear signs of divergence, with capital exiting bitcoin and ether ETFs while moving into alternative tokens such as Hyperliquid’s HYPE and XRP.
Bitcoin-linked ETFs recorded more than $1 billion in outflows last week, extending a broader institutional retreat. Ether funds also remained under pressure, losing an additional $215 million, according to SoSoValue. The sustained withdrawals from the two largest digital assets suggest waning interest in broad, benchmark-style crypto exposure.
At the same time, the shift does not point to a full-scale exit from the asset class.
Funds tied to Hyperliquid’s HYPE token—offered by Bitwise and 21Shares—pulled in a combined $72.38 million, signaling that investors are reallocating capital with greater selectivity. XRP and Solana ETFs also attracted inflows of $22 million and $15.6 million, respectively.
“The broader trend shows capital rotation rather than capital flight,” said Timothy Misir, head of research at BRN, noting that investors are pivoting toward newer narratives and away from crowded large-cap trades.
That rotation is evident in market performance. HYPE has surged from $38 to $63 over the past 10 days and is up 59% on the month, sharply outperforming bitcoin, which has gained just 1% over the same period.
On the fundamentals side, the Hyperliquid ecosystem is gaining traction. The platform generated $13.2 million in fees over the past week, ranking fifth overall behind major players such as Tether, Circle, and Pump. Canton Network placed fourth, though much of its activity has been driven by incentive programs, according to DeFiLlama.
Further upside could come from Hyperliquid’s recent collaboration with Coinbase and Circle to integrate USDC as a quote asset, a move expected to enhance liquidity and trading volumes.
Analysts say the platform is increasingly positioning itself as a competitor to traditional trading venues and prediction markets. Since the escalation of the Iran conflict in late February, Hyperliquid’s HIP-3 market has consistently processed strong volumes in perpetual futures tied to real-world assets like oil, gold, and U.S. equity indices.
Data from Artemis shows that Hyperliquid’s growth remains robust, with HIP-3 markets reaching a record $2.6 billion in open interest across RWA perpetuals. Meanwhile, its newer HIP-4 outcome markets are still in early stages of adoption.
According to Artemis, emerging segments such as equity perpetuals, pre-IPO trading, and prediction markets are still in their infancy—leaving Hyperliquid well positioned to capture further growth as these sectors expand.
