Key Highlights
- Trading volume for HYPE ETFs from Bitwise and 21Shares surged by 50%, recording $25.5 million in combined net inflows during Wednesday’s trading session.
- Eric Balchunas, Bloomberg’s ETF specialist, described the volume pattern as “very rare,” noting that typical ETFs experience declining interest after their debut.
- The token has posted impressive gains of 120% since the start of 2025 and jumped 18.5% over the last day, currently positioned at $56.
- Analytics from Santiment reveal that a short squeeze occurred after traders heavily bet against the token on May 18-19, only to see prices rise instead.
- HYPE futures open interest remains elevated above $1.92 billion, with fresh capital entering the market despite ongoing liquidations.
Hyperliquid’s HYPE token has reached the $56 mark, posting an 18.5% increase over the previous 24 hours and achieving 120% growth throughout 2025, based on CoinGecko statistics.
This price movement has been strongly connected to renewed institutional appetite for the asset, spurred by two recently launched US-based exchange-traded funds.
The two HYPE-linked ETFs — 21Shares’ offering (ticker: THYP) and Bitwise’s product (ticker: BHYP) — have generated approximately $41 million in combined trading activity since debuting this month.
21Shares introduced its product on May 12, attracting $1.2 million in initial net inflows. Bitwise entered the market on May 14 with $750,000 in inflows.
Eric Balchunas from Bloomberg highlighted on X that this volume trajectory was “very rare.” He explained that most newly launched ETFs experience strong first-day activity before fading into obscurity. HYPE’s ETFs demonstrated the reverse pattern, accumulating volume progressively.
Balchunas connected this phenomenon to market conditions: while virtually every other asset class — equities, fixed income, Bitcoin, and precious metals — has been declining, HYPE has maintained its upward trajectory.
Short Sellers Caught Off Guard
Cryptocurrency analytics platform Santiment revealed on X that market participants had heavily positioned against HYPE during May 18 and 19. Funding rate metrics displayed a pronounced spike toward negative territory, indicating widespread short positioning in anticipation of price declines.
Contrary to expectations, the token’s price continued climbing. This development compelled short sellers to close their positions through buybacks, creating additional buying pressure — a textbook short squeeze scenario, as Santiment described.
Open interest across HYPE futures contracts continues hovering above $1.92 billion. Santiment observed that, diverging from standard liquidation patterns, fresh participants continued entering positions even while others faced forced exits.
Wednesday represented the peak inflow day for both funds. The 21Shares product captured $16.6 million, while Bitwise’s fund secured $8.8 million.
Technical Analyst Projects $60 Target
Cryptocurrency market analyst AltcoinSherpa has suggested that “$60 is probably next” for HYPE. He characterized the present $50 level as suboptimal for short-term trading strategies but appealing for long-term position builders due to what he perceives as constrained downside exposure.
From a technical perspective, HYPE has maintained levels above its support band spanning $45 to $47. The Relative Strength Index has remained within the 50–65 corridor, beneath the overbought threshold of 70. MACD metrics have displayed bullish crossover patterns.
Near-term resistance exists within the $50 to $52 corridor. A decisive breakthrough above this zone could establish a pathway toward the prior peak around $59.
Grayscale submitted an application for a HYPE ETF during March. Blockchain monitoring service Lookonchain identified two wallet addresses associated with Grayscale that acquired $25 million worth of HYPE throughout the past week and subsequently staked those holdings.
HYPE was trading at roughly $51.62 at publication time, reflecting an 8.36% gain over the preceding 24-hour period.
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