“HYPE should at least surpass SOL before the end of this bull market,” declared BitMEX co-founder Arthur Hayes at the end of May, having previously repeated that HYPE would reach $150. The spat started when former Multicoin Capital co-founder Kyle Samani first targeted Hyperliquid, sparking a public back-and-forth that culminated in a $100,000 wager: HYPE will outperform every top-10 token by market cap for the rest of the year.
While the community digested the clash, HYPE quietly printed a new all-time high of $75, leaving onlookers fearful of heights and some even attempting short positions. This article examines the structural shifts behind HYPE’s buying pressure through the lens of ETF flows, protocol-level buybacks, institutional accumulation, and emerging catalysts.
Uninterrupted Inflows Over 14 Days, Outpacing BTC and ETH ETF Debuts
Two HYPE spot ETFs are currently trading: 21Shares’ THYP listed on Nasdaq on May 12, and Bitwise’s BHYP on the NYSE on May 15. As of June 2, both products have attracted net inflows for 14 consecutive trading days, accumulating roughly $136 million and already soaking up about 0.9% of HYPE’s total market cap. Bitwise’s BHYP alone accounts for $82.96 million in net inflows, making it the largest HYPE ETF globally.
Among the 12 U.S.-listed crypto spot ETFs, HYPE ETFs now rank as the fifth-largest by cumulative net inflows, trailing only BTC, ETH, XRP, and SOL ETFs. The contrast with major assets is stark: BTC spot ETFs have suffered 12 consecutive days of outflows since May 15, bleeding over $2.43 billion in May and breaking the previous record of eight straight outflow days set in early 2025. ETH spot ETFs have seen 16 straight outflow days since May 11, losing more than $540 million in May. VanEck’s BNB ETF, launched on May 28, has yet to register a single day of net inflows.
Measured by market cap absorption, HYPE ETFs have taken in close to 1% of the token’s total supply within their first two weeks, a pace that dwarfs the debut performances of BTC and ETH ETFs. According to SoSoValue, BTC spot ETFs drew $1.46 billion in net inflows during their first two weeks—merely 0.2% of Bitcoin’s then-market cap. ETH spot ETFs actually recorded net outflows of about $400 million over the same period. SOL spot ETFs managed roughly $380 million in net inflows, representing just 0.47% of SOL’s market cap at the time. The degree of traditional finance FOMO around HYPE is outpacing even the historic launches of Bitcoin and Ether ETFs.
AF Buybacks Meet ETF Demand, Countering Token Unlocks
Beyond external ETF buying, Hyperliquid’s native token repurchase mechanism provides a solid price floor. In early 2025, the protocol introduced the Assistance Fund (AF) mechanism, which automatically directs 97% of trading fees (perpetuals and spot) into an AF address for continuous HYPE buybacks; the ratio was later raised to 99%. This mechanism enables HYPE to effectively capture Hyperliquid’s protocol value and has accumulated over $1.1 billion in HYPE repurchases since inception.
While the cumulative ETF inflow still lags behind the AF’s total buyback volume, its speed is noteworthy: in just half a month, ETF inflows equaled one-tenth of the AF’s total, with a single-day peak of $31.62 million on May 29. The arrival of spot ETFs is now creating a dual buying force alongside AF buybacks, helping markets absorb the regular monthly token unlocks. Under Hyperliquid’s rules, team tokens are unlocked once per month, on the 6th of each month, starting January 2026. On June 6, approximately $38.7 million worth of HYPE will be unlocked, but the combined bid from ETFs and AF repurchases may keep selling pressure at bay.
Of note is that investors behind ETFs often have little awareness of tokenomics or have never directly interacted with a DeFi protocol—they simply seek HYPE exposure. Consequently, ETF-driven buying tends to be less sensitive to unlock events, so long as HYPE’s fundamentals remain stable. Moreover, additional ETF supply is on the way: on June 2, Grayscale filed an amended S-1 for a Hyperliquid Staking ETF (ticker HYPG), seeding it with 200,000 HYPE, with trading set to begin on June 4. More passive capital inflows are poised to deepen liquidity and institutional engagement.
a16z, Galaxy Digital and Large-Scale Institutional Accumulation
Institutional conviction is not merely verbal. Starting in August 2025, a16z began accumulating HYPE in size on-chain. According to crypto analyst @ai_9684xtpa, a16z may already be the sixth-largest HYPE on-chain holder and the largest external holder. Its primary address holds 3.095 million HYPE, worth over $223 million. On-chain data reveals a16z continues buying through multiple associated addresses: on May 28, an address beginning with 0x4c6 withdrew 253,947 HYPE from multiple exchanges and market makers at an average price of about $59.2; on May 30, an address beginning with 0xb5E bought another 226,121 HYPE, and since April 14 that address has accumulated 3.9 million HYPE at an average price of roughly $49.4.
Galaxy Digital has been equally active. On June 3, the firm withdrew 179,000 HYPE (worth about $12.62 million) from Coinbase, according to Lookonchain, while another linked wallet purchased 158,100 HYPE (about $8.8 million) on May 21. Bitwise CIO Matt Hougan has publicly stated that HYPE is not just an altcoin but a “second-generation” cryptocurrency, citing its real value capture, buybacks and institutional demand.
From Perp DEX to Financial Infrastructure, Russell 3000 Listing as Next Catalyst
As traditional crypto ETF flows dry up and even Strategy begins selling bitcoin, institutions are reclassifying Hyperliquid from a derivatives DEX into a blockchain financial infrastructure platform. Grayscale’s report suggests Hyperliquid could eventually challenge the traditional derivatives and exchange ecosystem, potentially evolving into a “financial services giant.” This narrative upgrade is keeping the publicly traded company PURR, which is heavily exposed to HYPE, comfortably in profit. On May 22, FTSE Russell released its preliminary list for the June 2026 Russell 3000 Index reconstitution, and PURR appears on the addition list, with the change expected to take effect on June 26. The Russell 3000 covers about 3,000 of the largest US companies and serves as a benchmark for roughly $10.6 trillion in assets. If PURR is included, it would not only attract passive fund flows but also raise its profile, possibly even mimicking Strategy’s “raise debt, buy coin” model—potentially adding yet another layer of structural buying pressure for HYPE.
With spot ETF inflows, AF buybacks, heavy institutional accumulation, and a potential Russell 3000 catalyst all converging, HYPE’s buying structure has fundamentally changed. While short-term jitters and profit-taking may appear after the breakout above $75, the hard data shows that in this cycle, HYPE’s institutional participation and underlying value support have already far outstripped those of other altcoins.