Hyperliquid (HYPE) token draws ETF inflows as price falls on Arthur Hayes sell‑off

In May 2026, new exchange‑traded funds tracking the Hyperliquid (HYPE) token launched, raising close to $150 million in assets. Bitwise, 21shares and other firms introduced spot ETFs (BHYP, THYP) and Grayscale added a Hyperliquid Staking ETF (HYPG), collectively amassing over $150 million, with the Grayscale fund holding $4.5 million and other funds holding $70‑$76 million each. The products aim to give investors exposure to HYPE without navigating a decentralized exchange, and managers say the inflows reflect interest from investors outside the traditional crypto ecosystem.

Separately, crypto market sentiment turned negative when prominent trader Arthur Hayes liquidated portions of his HYPE and NEAR holdings. The sell‑off triggered accelerated downside volatility for HYPE and a broader price drop for NEAR, highlighting the sensitivity of mid‑cap tokens to large‑holder activity in a market with tightening liquidity. Analysts note that such moves illustrate the reflexive nature of crypto pricing, where whale actions can quickly reshape short‑term market dynamics.