Crypto ETFs Shakeup — $1B Outflows from Bitcoin, Money Pours into HYPE
By John Nada·May 25, 2026·2 min read
Crypto ETFs see $1B outflows. Investors pivot to Hyperliquid's HYPE and XRP, shifting away from traditional giants like Bitcoin and Ethereum.
Investors are shifting gears, pulling billions from Bitcoin and Ethereum ETFs while diving into Hyperliquid's HYPE and XRP funds.
According to CoinDesk, Bitcoin ETFs experienced over $1 billion in outflows last week, a clear indication of waning institutional interest in traditional crypto giants. Ethereum funds didn't fare much better, losing $215 million. But this isn't a mass exodus from crypto altogether. Investors are recalibrating, reallocating capital from conventional assets to more novel opportunities like Hyperliquid's HYPE token, which attracted $72.38 million in inflows.
HYPE's debut on the ETF scene is far from a quiet affair. In just ten days, its price surged from $38 to $63, a 59% leap this month alone. Contrast that with Bitcoin's modest 1% uptick. Hyperliquid isn't just riding a price wave; it's generating serious revenue. With $13.2 million in fees over the last week, it ranks fifth in revenue generation, trailing well-established names like Tether and Circle.
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This shift isn't just about chasing new tokens. Hyperliquid is redefining the trading landscape, expanding into areas traditionally dominated by Wall Street. Its HIP-3 markets are handling billions in open interest across real-world asset-based perpetual futures. The recent USDC integration with Coinbase and Circle only amplifies its potential.
The broader narrative is one of change. According to Timothy Misir of BRN, the focus is moving away from "crowded large-cap exposure" toward "newer narratives." This isn't just a market quirk but a significant structural pivot. As Hyperliquid expands into pre-IPO markets and prediction contracts, the boundaries between traditional finance and crypto blur further.
Yet, with every opportunity comes risk. Will this be a sustainable shift or a speculative bubble destined to burst? Such questions underscore the complexity of the evolving crypto market landscape. But one thing's certain: as Wall Street giants keep an eye on Hyperliquid's meteoric rise, the future of crypto trading is being rewritten, line by line.