Hyperliquid ETF inflows reverse after strong initial momentum

Inflows into Hyperliquid-focused exchange-traded funds (ETFs) have reversed following strong initial momentum. The Grayscale Hyperliquid Staking ETF, the Bitwise Hyperliquid ETF, and the 21Shares Hyperliquid ETF all saw significant early growth, with the latter two managing over $150 million in assets and Grayscale approaching $113 million.

The slowdown in ETF flows is attributed to competition from perpetual futures (perps). Hyperliquid serves as a dominant decentralized protocol for trading perpetual futures, recording over $633 billion in volume during the first quarter of 2026. This activity often leads to token buybacks, which can influence investor behavior and competition with centralized exchanges.