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Hyperliquid-linked ETFs see first outflows as HYPE slips
SoSoValue data show more than $13 million in July net outflows, and HYPE is down over 13% on the month, aligning the ETF retreat with a reversal in price momentum.
Hyperliquid-linked exchange-traded funds have turned lower for the first time since launch, with investors withdrawing capital in July, according to CryptoSlate. Data from SoSoValue show the three funds posted more than $13 million in net outflows in July, putting them on track for their first negative month after drawing about $280 million since inception.
SoSoValue also indicates nearly $27 million left the products after demand reversed in the second half of July, ending a nine-week streak of consecutive inflows. CryptoSlate links the ETF outflow reversal to a sharp pullback in the underlying HYPE token, which has fallen more than 13% for the month and traded near $54 this week, roughly 30% below a mid-June high near $76.
CryptoSlate notes that HYPE is heading toward only its second losing month of the year, even as Grayscale Research argues the token is materially undervalued relative to the economics of Hyperliquid’s network. DeFiLlama data cited by CryptoSlate say Hyperliquid has crossed $1 billion in cumulative protocol revenue less than two years after launch, despite a broad crypto downturn.
CryptoSlate adds that Grayscale has tried to connect the protocol’s activity to token value by modeling revenue using an “earnings per token” approach tied to Hyperliquid’s buyback mechanism. In that framework, Grayscale estimates Hyperliquid could approach $1 billion in annual revenue by 2027, implying 270 million to 310 million HYPE tokens in circulation by year end and estimated earnings per token around $3.25 to $3.75, with HYPE trading at roughly 15 to 18 times the projected figure at the time of the analysis.