HYPE ETF Sees Inflows Amid Withdrawal Trends in Crypto Funds
Hyperliquid (HYPE) exchange-traded funds experience slight inflows while Bitcoin and Ethereum face significant outflows.
HYPE ETFs Experience Minor Inflows
On November 3, the US-based Hyperliquid (HYPE) exchange-traded funds (ETFs) recorded net inflows totaling approximately $605,000. In stark contrast, leading coins Bitcoin (BTC) and Ethereum (ETH) experienced substantial withdrawals, losing $115.56 million and $85.35 million, respectively. This data is sourced from SoSoValue.
Despite the positive inflow for HYPE, it barely made a dent compared to the massive withdrawals from the more prominent crypto ETFs.
Recent Performance of HYPE ETFs
The recent inflow into HYPE ETFs came right after it faced a loss of $2.86 million just a day earlier, as reported by SoSoValue. Consequently, HYPE remained in a negative position for the week, with its total net outflows over the past month amounting to $45.07 million. Notably, its highest recorded net inflow was an outstanding $356.58 million back on September 4.
Interestingly, these inflow figures show that there is little evidence to suggest that investors are shifting their capital from Bitcoin or Ethereum to HYPE, as HYPE only attracted about $1 for every $330 that exited the larger crypto funds.
Ethereum and Bitcoin Outflows Trend
Currently, Ethereum ETFs have shown a consistent outflow for a week straight, aggregating to a significant $656.68 million in losses since the last recorded inflow on October 23. These outflows are directly correlated to the funds' asset performance, affecting the overall sentiment among HYPE holders.
HYPE Price Movement and Fund Assets
As of the latest data, HYPE is trading at $84.10, reflecting a slight increase of 1.09% within the last 24 hours, according to BeInCrypto Markets. It remains around 14% lower than its peak value of $97.96 achieved on September 23.
The HYPE ETFs are tied to the actual token, meaning that when investors purchase shares, the ETF acquires more HYPE tokens as backing. Conversely, if investors redeem shares, the ETF reduces its HYPE holdings accordingly.
Currently, HYPE ETFs represent approximately 2.11% of the token's overall market cap, which stands at $20.04 billion, according to SoSoValue. In comparison, Bitcoin and Ethereum funds hold a larger percentage, with Bitcoin at 6.38% and Ethereum at 4.78% of their respective markets.
On November 3, HYPE ETF assets saw a rise from $412.02 million to $423.04 million. However, the recent inflow only made up a fraction of this total increase, with $605,000 being overshadowed by the price movements of the token itself.
Additionally, HYPE ETFs recorded a trading volume of $13.55 million in shares that day, a staggering figure that indicates most activity stems from existing shares changing hands rather than new investments being funneled into the funds. For HYPE investors, tracking the trend in flows is essential as the ETFs have not seen consecutive inflow days since October 1 and 2. A continued inflow could signal a positive shift.
