Spot HYPE ETFs absorb 1% of market cap in first 10 trading days: Kairos

Spot Hyperliquid exchange-traded funds absorbed 1.04% of HYPE’s market capitalization in their first 10 trading days, giving them the strongest crypto ETF debut by one market-cap-adjusted demand metric, according to Kairos Research.

Kairos compared cumulative net flows into new spot crypto ETF issuers against the market capitalization of each underlying asset at launch. By this metric, HYPE ETFs outpaced spot Bitcoin, Ether and Solana ETF debuts, which absorbed 0.59%, 0.41% and 0.31% of their respective market capitalizations.

Bloomberg ETF analyst Eric Balchunas said the 21Shares Hyperliquid ETF (THYP) had risen 50% since launching two weeks earlier. Balchunas compared the pace with Roundhill’s DRAM ETF, which he said took five weeks to gain 50%, and BlackRock’s spot Bitcoin ETF, IBIT, which he said took two months.

The data adds another measure of early demand for Hyperliquid-linked funds after US-based HYPE ETFs from Bitwise and 21Shares saw trading activity rise following a slow launch. 

The comparison does not mean HYPE ETFs raised more money than Bitcoin or Ether ETFs in absolute terms. Kairos’ metric strips out GBTC and ETHE outflows to exclude legacy trust redemptions and focuses on new-issuer demand relative to the size of each asset’s market.

Spot crypto ETF inflows as a percentage of their market capitalization. Source: Kairos Research

HYPE leads altcoin ETF inflows as spot Bitcoin outflows top $2 billion

SoSoValue data shows that HYPE ETFs recorded $6.89 million in net inflows during their partial launch week from May 12 to May 15, then rose to $68.02 million in net inflows for the week ending May 22. The increase made HYPE the largest altcoin-linked ETF inflow category among the assets shown for the last complete trading week. 

Spot Bitcoin and Ether ETFs moved in the opposite direction over the same time periods. Spot BTC ETFs recorded $1 billion in net outflows in the week ending on May 15 and $1.26 billion in the week ending May 22, bringing two-week outflows to $2.26 billion. Spot Ether ETFs saw $255.11 million and $215.99 million over the same periods, according to SoSoValue. 

Related: Hyperliquid launches prediction markets for real-world events

Meanwhile, other altcoin-linked spot ETFs also recorded positive flows, though below HYPE in the last complete trading week. Spot XRP ETFs saw $22.04 million, while Solana recorded $15.63 millon in the week ending May 22. 

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