“HYPE should surpass SOL before this bull run ends,” declared BitMEX co-founder Arthur Hayes in late May, the most vocal “H guard.” The comment came after Multicoin Capital former partner Kyle Samani first attacked Hyperliquid, sparking a feud that ended with a $100,000 bet on HYPE outperforming every top-10 token by year-end. In recent days, HYPE surged to a new all-time high of $75, triggering fear of heights among investors and some attempted shorting. Odaily Planet Daily examines the changing fundamentals from a buy-sell perspective.
ETF Inflows Absorb Market Cap Share Surpassing BTC/ETH Launch Records
Two HYPE spot ETFs currently exist. On May 12, 21Shares launched the first Hyperliquid ETF (THYP) on Nasdaq; on May 15, Bitwise listed BHYP on NYSE. By June 2, HYPE spot ETFs had recorded 14 consecutive days of net inflows, cumulatively exceeding $136 million and absorbing around 0.9% of HYPE’s market cap. Bitwise’s BHYP alone attracted $82.96 million, making it the largest HYPE ETF globally. Ranked by total cumulative net inflows, HYPE spot ETFs have become the fifth-largest crypto spot ETF product, trailing only BTC, ETH, XRP, and SOL ETFs, leaving much older competitors far behind.
Comparing with mainstream crypto ETFs underscores a clear rotation. Bitcoin spot ETFs have seen 12 straight days of net outflows since May 15, with a staggering $2.43 billion exiting in May—a record streak. Ethereum spot ETFs logged 16 consecutive days of outflows since May 11, totaling over $540 million in redemptions, while the newly launched VanEck BNB ETF even recorded no net inflow for four straight days. Traditional capital's FOMO around HYPE now exceeds the debut enthusiasm for BTC and ETH ETFs.
On a market-cap proportional basis, HYPE ETFs absorbed approximately 1% of HYPE's market cap within two weeks—far outpacing predecessors. Bitcoin spot ETFs saw $1.46 billion in their first two weeks, representing just 0.2% of BTC’s market cap at the time. Ether spot ETFs experienced net outflows of around $400 million in the same period. Solana spot ETFs drew $380 million, absorbing about 0.47% of SOL’s market cap. This persistent inflow trajectory provides firm support for HYPE’s price.
Dual Buy Wall: Protocol Buybacks and ETFs Offset Unlock Pressure
Beyond ETFs, Hyperliquid’s Assistance Fund (AF) has been a powerful buyer since early 2025. The mechanism channels 99% of protocol trading fees (perps, spot, etc.) into systematic HYPE repurchases, accumulating over $1.1 billion worth of HYPE to date. With daily protocol revenue hovering between $1 and $3 million, the AF’s relentless buying has provided a bedrock of support. The ETF inflows, while smaller in absolute terms, are growing fast; in just half a month they matched one-tenth of AF’s total buyback volume, with a single-day record of $31.62 million on May 29. Together, the AF and ETF demand create a dual-layer buying wall.
Regarding token unlocks, team allocations began monthly vesting on the 6th of each month starting January 2026. The upcoming June 6 unlock is valued at $38.7 million. However, ETF investors—often institutional—are less sensitive to tokenomics; as long as fundamentals hold, the unlock is unlikely to create meaningful sell pressure. More HYPE ETFs are on the way. On June 2, Grayscale filed an S-1 amendment for its Hyperliquid Staking ETF (HYPG), seeding it with about 2 million HYPE and expected to begin trading on June 4. This will deepen liquidity and institutional participation.
Institutional Hoarding: a16z Could Be Largest External Holder, Galaxy Digital Adds More
Institutional FOMO is no less intense than among retail traders. Since August 2025, a16z has been accumulating HYPE at scale. According to on-chain analyst Ai Yi (@ai_9684xtpa), a16z may already be the sixth-largest on-chain holder and the largest external entity, with one address holding 3.095 million HYPE worth over $223 million. Multiple associated wallets are also buying continuously: on May 28, a wallet starting with 0x4c6 withdrew 253,947 HYPE at an average of $59.2; on May 30, another address (0xb5E) purchased 226,121 HYPE and has accumulated 3.9 million HYPE since April 14 at an average price of $49.4.
Galaxy Digital is also adding to its bag. On June 3, the firm extracted 179,000 HYPE ($12.62 million) from Coinbase, and on May 21, another linked wallet bought 158,100 HYPE ($8.8 million). Institutions no longer treat HYPE as an ordinary altcoin. Bitwise CIO Matt Hougan called it a “second-generation” cryptocurrency with real value capture, buybacks, and institutional demand. Grayscale’s report highlights Hyperliquid’s potential to challenge traditional derivatives and grow into a financial services giant.
DAT Catalyst: PURR Poised for Russell 3000 Inclusion
While the DAT hype cools and sector leader Strategy even begins selling coins, publicly traded companies betting on HYPE remain profitable. On May 22, FTSE Russell published the preliminary list for the June 2026 Russell 3000 reconstitution, with PURR appearing in the additions, effective June 26. The Russell 3000 covers roughly the 3,000 largest U.S. stocks, with approximately $10.6 trillion in assets benchmarked against it. If included, PURR would attract passive fund flows and increased visibility. Future DAT companies could adopt a “fund-buy-crypto” model similar to Strategy, becoming another reliable source of buying pressure for HYPE.