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Hyperliquid ETF inflows stall after early surge, JPMorgan warns

JPMorgan links the July and early August slowdown to competition from regulated crypto derivatives and the growth of prediction markets.

Reported · Written up by our desk · Market Structure

CoinDesk reports that JPMorgan says inflows into Hyperliquid exchange traded funds have largely stalled in July and early August after surging in May and June.

In a Thursday note, JPMorgan analysts led by Nikolaos Panigirtzoglou attributed the cooling demand to rising competition from regulated crypto derivatives platforms and to crowding in prediction markets, areas where Hyperliquid is expanding beyond its decentralized perpetual futures trading.

The bank said Hyperliquid ETFs led non bitcoin crypto funds in inflows relative to assets under management in May and June, but that momentum faded as concerns grew over the decentralized protocol's competitive outlook.

JPMorgan also warned that the rollout of US regulated crypto perpetual futures products could shift trading activity away from offshore decentralized venues like Hyperliquid, which it says remain exposed to licensing, compliance, and investor protection concerns.

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