HYPE ETF inflows stall for 12 sessions as JPMorgan flags competition

HYPE ETF inflows stalled for 12 straight sessions as JPMorgan warned regulated U.S. venues threaten Hyperliquid's market share.

HYPE ETF inflows stalled for 12 sessions through Aug. 3, with $29.8 million in net outflows, as JPMorgan warned that U.S.-regulated exchanges threaten Hyperliquid's dominance in crypto perpetuals trading.

"We see significant challenges to the market share of decentralized platforms such as Hyperliquid," analysts led by Nikolaos Panigirtzoglou, managing director at JPMorgan, said in an Aug. 6 report.

The 12-session drought, from July 17 through Aug. 3, counted nine negative sessions and three flat ones, according to Farside Investors data. Bitwise's BHYP absorbed $22.5 million of the outflows, more than 21Shares' THYP at $5.3 million and Grayscale's HYPG at $2 million. Cumulative reported flows across the three products still stood at about $283 million.

The stall matters because HYPE's valuation is tied directly to fees generated on Hyperliquid's perpetual futures platform. July revenue fell to $43 million from $92 million a year earlier, a decline of more than 50 percent, according to Blockworks Research's Shaunda Devens.

Regulated Venues Draw Liquidity Away

JPMorgan attributed the slowdown to the rollout of U.S.-regulated crypto perpetual futures. The CFTC cleared Coinbase and Kalshi to offer the contracts June 1, opening a domestic venue for products that previously ran offshore. "The launch of U.S.-regulated crypto perpetual futures products could accelerate a shift in liquidity away from offshore and decentralized venues to onshore venues," the analysts wrote.

The bank also flagged competition in prediction markets, where Hyperliquid launched its "Outcomes" contracts in May. JPMorgan noted that HYPE is the fourth-largest asset held in corporate crypto treasuries, behind bitcoin, ether and Solana, and that its outlook depends on ETF flows and trading activity.

Revenue Halving Exposes Treasury-Driven Rally

The ETF stall follows a price surge that Blockworks Research's Devens attributed to concentrated treasury buying rather than earnings power. Hyperliquid Strategies, known as PURR, accumulated 11.12 million HYPE tokens, exceeding $100 million weekly and holding nearly 10 percent of circulating supply. The AQAv2 upgrade, which directs stablecoin reserve-yield revenue to HYPE buybacks, added to the momentum.

HYPE traded at $53.94 on Aug. 3, down 4.53 percent over seven days and 22.82 percent over 30 days, according to CryptoSlate data. The token has since bounced, rising about 5 percent to roughly $55 in 24 hours. Technical analysis puts immediate support at $52, with a retest of $56 resistance the likely next move if that holds. A break below $50 opens the path toward $48, with $41-$43 cited as a secondary target.

Spot exchange data from CoinGlass shows about $22.34 million in net HYPE outflows from exchanges over the past 30 days, a pattern consistent with holders moving assets to self-custody. Japan-listed Eole Inc. has established a corporate treasury position, and Bitwise CIO Matt Hougan has advocated for HYPE's long-term potential.

Until monthly revenue improves from July's $43 million, the bullish narrative remains unproven. JPMorgan said tracking ETF flows and Hyperliquid's market share in trading and prediction markets would be key to its outlook going forward.

This article is for informational purposes only and does not constitute investment advice.