Hyperliquid Near Highs as ETF Flows Diverge From Bitcoin

Key Moments

ETF Flows Highlight Diverging Sentiment

Hyperliquid (HYPE) continues to trade in a strong uptrend, holding above $74 on Thursday and hovering near its record high of $75.76. This follows an 80% advance in May, even as Bitcoin (BTC) drops back below $65,000 and sparks broader risk-off sentiment across the crypto market.

While the wider space grapples with renewed volatility, newly launched ETFs focused on HYPE have drawn roughly $135 million in fresh capital over the past month. These inflows underline growing institutional interest and are helping power the token’s latest rally.

At the same time, appetite for Bitcoin exposure via ETFs has weakened. Bitcoin products recorded $396.60 million in net redemptions on Wednesday, bringing cumulative outflows over the last 13 days to $4.37 billion. This pattern indicates waning institutional participation in BTC.

In stark contrast, HYPE-linked ETFs registered $2.99 million in inflows on Wednesday alone. Over 15 consecutive days, total inflows have reached $140 million, underscoring a persistent bid for the token among professional investors.

This divergence suggests an active rotation of capital from Bitcoin into an exchange token, with market participants responding to Hyperliquid’s revenue trajectory and expanding ecosystem of products. The competitive landscape is set to intensify further as Grayscale prepares to debut its own HYPE-focused ETF on Thursday, adding another institutional channel for exposure.

Institutional Focus on Hyperliquid’s Business Model

Data from Hyperscreener indicates that the HIP-3 protocol – which facilitates 24/7 trading in tokenized Real World Assets (RWAs), including listed and pre-IPO equities, as well as perpetual futures on commodities – recorded $62.63 billion in volume during May. This marks the third consecutive month in which HIP-3 activity has exceeded $60 billion, highlighting sustained engagement with the platform’s offerings.

Matt Hougan, Chief Investment Officer (CIO) at Bitwise, which manages the largest HYPE ETP with $107 million in Assets Under Management, points to a shift in how crypto investors are evaluating opportunities.

“This is one reason why crypto investors are increasingly focused on revenues and enthusiastic about protocols like Hyperliquid that have clear fundamentals. Investors still believe in crypto, but now that it’s a contrarian bet, they favor fundamentals over vibes,” said Hougan in an official note on Tuesday.

Key ETF and Volume Metrics

Technical Picture: Overbought but Still Climbing

Hyperliquid trades around $74.00 at press time on Thursday, extending a strong multi-week advance. The token has posted five straight weeks of gains, keeping the near-term technical bias clearly to the upside.

Momentum indicators, however, highlight stretched conditions. On the weekly chart, the Relative Strength Index (RSI) stands at 82, firmly in overbought territory. The Moving Average Convergence Divergence (MACD) remains above its signal line with a widening bullish configuration, signaling robust – though potentially overextended – upward momentum.

From a Fibonacci perspective on the weekly timeframe, the current rally is pressing against the 127.2% extension level at $79.40, calculated from the prior downswing between $59.45 and $20.51. A decisive weekly close above $79.40 would clear a technical path beyond the $100 psychological threshold, bringing the 161.8% extension at $114.75 into view. This level aligns with an overhead trendline, adding technical significance.

Key Levels to Watch

On the downside, the first technical support level is the previous Fibonacci swing high around $59.45. Below that, additional demand is anticipated near the 78.6% retracement level at $47.34, providing a deeper potential floor if profit-taking accelerates.