HYPE retreated after weeks of continuous gains, briefly falling below $70 on Thursday. The token had previously surged approximately 80% in May. Simultaneously, the overall crypto market weakened, with Bitcoin falling below $63,000, and risk appetite cooling.
Institutional funds are still flowing in.
Alongside the price correction, institutional funds continued to allocate to related products. The report cited data showing that ETFs focusing on HYPE attracted approximately $135 million in inflows last month, and recorded another $2.99 million in net inflows on Wednesday, marking 15 consecutive trading days of positive inflows, with a total size approaching $140 million.
In contrast, Bitcoin ETFs are facing significant liquidity pressure. On Wednesday, Bitcoin ETFs saw a net outflow of $396.6 million, bringing the cumulative outflow over the past 13 trading days to $4.37 billion. The report suggests this reflects some institutional funds shifting from Bitcoin products to more volatile and faster-growing crypto assets.
Platform transaction volume remains high
In addition to ETF funds, trading activity on the Hyperliquid platform itself is also rising. According to Hyperscreener data, the HIP-3 protocol, which supports 24-hour trading of tokenized real-world assets, saw a trading volume of $62.63 billion in May.
This marks the third consecutive month that the protocol has seen trading volume exceeding $60 billion. Related transactions cover tokenized stocks, pre-IPO equity, and commodity perpetual contracts. The continued high trading volume indicates that Hyperliquid is expanding beyond a single crypto trading platform to encompass more asset classes.
New products continue to increase
The report also mentioned that Grayscale launched an ETF focused on HYPE on Thursday. The launch of the new product is seen as another signal of institutional attention to the Hyperliquid ecosystem, and further expands the availability of this asset in traditional investment channels.
However, following the rapid price increase, short-term volatility has also increased. The article mentions that the market is currently focused on two main themes: whether institutional funds continue to flow into HYPE-related products, and whether the platform's trading volume can remain high. These two factors will continue to influence market expectations regarding Hyperliquid's future performance.
