JPMorgan says Hyperliquid ETF inflows have cooled as competition picks up

News Editor

2026-08-06 12:48:30

JPMorgan said exchange-traded funds tied to Hyperliquid were among the strongest non-Bitcoin crypto fund products for inflows in May and June, measured against assets under management, but that momentum faded in July and early August. In a report from analysts led by Nikolaos Panigirtzoglou, the bank said investor concerns about the protocol’s competitive position are rising as the market becomes more crowded. The bank described Hyperliquid as one of the crypto market’s standout growth stories this year, driven in part by heavy trader use of its decentralized perpetual futures platform, which helped lift the HYPE token. That growth has drawn attention from institutional capital, corporate treasury investors, and ETF issuers. JPMorgan also warned that decentralized derivatives venues face pressure from regulated centralized exchanges. As crypto perpetual products gradually roll out under the U.S. regulatory framework, some trading activity could shift away from offshore decentralized platforms such as Hyperliquid. The report added that Hyperliquid is expanding into prediction markets to reduce dependence on perpetual trading fee revenue, though competition there is also increasing.

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JPMorgan said Hyperliquid-related ETFs, which had ranked among the strongest non-Bitcoin crypto fund products for inflows in May and June, saw those inflows slow sharply in July and early August as competition intensified.

Lead in inflows relative to AUM has faded

In a report from analysts led by Nikolaos Panigirtzoglou, the bank said Hyperliquid ETFs had outpaced other non-BTC crypto funds in inflows relative to assets under management, or AUM, during May and June. That pattern has now weakened.

JPMorgan said Hyperliquid has been one of the crypto market’s most closely watched growth stories this year. Its native token, HYPE, rose sharply as traders heavily used the protocol’s decentralized perpetual futures trading platform. The project’s rapid expansion made Hyperliquid one of the largest crypto ecosystems outside Bitcoin and Ethereum, while also drawing interest from institutional investors, corporate treasury buyers, and ETF issuers.

Regulated venues may pull activity away from offshore DeFi platforms

The bank said decentralized derivatives platforms are facing competitive pressure from regulated centralized exchanges. As crypto perpetual products gradually launch under the U.S. regulatory framework, some trading activity could move from offshore decentralized platforms such as Hyperliquid to compliant venues.

The report also said Hyperliquid is pushing into prediction markets to reduce its reliance on perpetual trading fee income. Competition in that segment is also getting tougher.

Uncertainty remains over market share gains

JPMorgan said that while Hyperliquid has been one of crypto’s best-performing projects this year and has already become the fourth-largest asset in corporate crypto reserves, behind only Bitcoin, Ethereum, and Solana, it is still unclear whether it can keep taking market share from rivals such as Solana and XRP.

Data cited in the report showed that Bitcoin and Ethereum ETFs currently hold about $77 billion and $10 billion in assets under management, respectively. By comparison, other crypto ETFs including those tied to Solana, XRP, and Hyperliquid together account for only about $2 billion to $3 billion in AUM.

The report was cited by CoinDesk and relayed by Odaily.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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