HYPE has been on a strong rally, recently touching a new all-time high of $75. The surge is backed by three key forces: persistent net inflows into spot ETFs, continuous buybacks from Hyperliquid's protocol revenue, and large-scale accumulation by institutional investors. BitMEX co-founder Arthur Hayes publicly stated at the end of May that "HYPE should at least surpass SOL before this bull market ends," having previously expressed multiple times that HYPE would reach $150. His spat with Solana advocate Kyle Samani escalated into a $100,000 bet on whether HYPE would outperform all top‑10 market cap tokens for the rest of the year. The conflict highlights a divergence in market perception of Hyperliquid's ecosystem value, and HYPE's recent price action is tilting the odds in Hayes' favor.
Spot ETFs: 14-Day Inflow Streak, Absorbing ~1% of Market Cap
Two HYPE spot ETFs are currently trading: 21Shares' THYP (listed May 12) and Bitwise's BHYP (listed May 15). As of June 2, both have recorded 14 consecutive days of net inflows, totaling over $136 million and absorbing roughly 0.9% of HYPE's total market cap. BHYP leads with $82.96 million in net inflows, becoming the world's largest HYPE ETF.
Among the 12 U.S. crypto spot ETFs, HYPE's fund ranks as the fifth largest by cumulative net inflows, trailing only BTC, ETH, XRP, and SOL ETFs—surpassing many earlier-launched products. This underscores the extent to which traditional capital is chasing exposure to Hyperliquid.
Capital Rotation: HYPE ETF Outshines BTC and ETH
Data since May paints a stark contrast. BTC spot ETFs have experienced 12 consecutive days of net outflows starting May 15, with total May outflows exceeding $2.43 billion, breaking the previous record of eight straight outflow days set in early 2025. ETH spot ETFs have logged 16 straight outflow days since May 11, shedding over $540 million in May. Meanwhile, HYPE ETFs have consistently attracted new money, with the degree of FOMO surpassing even the debut periods of BTC and ETH spot ETFs.
On a market-cap-proportional basis, HYPE ETF inflows in their first two weeks absorbed nearly 1% of HYPE's market cap, far exceeding BTC's 0.2% and SOL's 0.47% during their respective initial two-week periods. ETH ETFs even saw net outflows in their first two weeks.
Protocol Revenue Buybacks Provide Another Layer of Support
Beyond ETFs, Hyperliquid's Assistance Fund (AF) mechanism serves as a robust price floor. The system automatically channels 99% of protocol trading fees (from perps, spot, etc.) into continuous HYPE repurchases. Since inception, the AF has bought back over $1.1 billion worth of HYPE. Daily protocol revenue runs between $1 million and $3 million, generating constant buying pressure.
The arrival of spot ETFs creates a dual support structure that could offset selling pressure from the team's token unlock. On June 6, $38.7 million worth of tokens will be released in a single monthly unlock. However, ETF investors are typically less sensitive to tokenomics and unlocks; as long as fundamentals remain stable, unlocks are unlikely to stifle buying momentum.
Institutional Accumulation: a16z and Galaxy Digital Build Positions
Institutional FOMO rivals that of retail. On-chain data suggests a16z may now be the sixth-largest HYPE holder on-chain and the largest external (non-Hyperliquid ecosystem) entity, with 3.095 million HYPE worth over $223 million. On May 28 and 30, addresses linked to a16z withdrew large amounts of HYPE from exchanges, adding to a cumulative buying spree that has been ongoing since at least mid-April.
Galaxy Digital is also hoarding HYPE. On June 3, it withdrew 179,000 HYPE (~$12.62 million) from Coinbase, adding to a 158,100 HYPE purchase by another wallet on May 21. Bitwise CIO Matt Hougan described HYPE as a “second-generation cryptocurrency” with real value capture and buyback capabilities. In a research report, Grayscale positioned Hyperliquid as a potential “financial services giant” that could challenge traditional derivatives trading and exchange infrastructure.
More ETFs on the Way, PURR Eyes Russell 3000 Inclusion
On June 2, Grayscale filed an amended S-1 for its Hyperliquid Staking ETF (ticker HYPG), seeded with about 2 million HYPE, set to begin trading on June 4. The launch of additional ETFs will bring deeper liquidity and greater institutional participation to HYPE.
Meanwhile, DAT company PURR, which holds significant HYPE exposure, has appeared on the preliminary list of additions to the Russell 3000 Index for the June 2026 rebalance, with the change expected to take effect on June 26. Inclusion would trigger passive allocation from index-tracking funds and could enable PURR to raise more capital for further HYPE purchases, creating yet another structural buyer.
With multiple funding channels converging, HYPE's $75 milestone is increasingly looking like the start of a new institutional-driven narrative.