Capital flows reveal a rotation from large-cap crypto ETFs into niche altcoin products, including Hyperliquid’s HYPE token.
Investors pulled $1 billion from bitcoin ETFs and $215 million from ether funds last week, marking a sharp decline in demand for major crypto assets. The outflows reflect waning institutional interest in broad, large-cap exposure as market sentiment cools.
Meanwhile, capital is flowing into select altcoin products, with Hyperliquid’s HYPE token funds attracting $72.38 million. XRP and solana ETFs saw inflows of $22 million and $15.6 million, respectively, signaling a targeted rotation rather than a full exit from crypto markets.
Hyperliquid’s HYPE token has surged 59% this month, driven by rising fees and trading volumes in real-world asset-linked markets on the platform. The shift underscores a fracturing in crypto fund flows as investors seek higher-risk opportunities.