21Shares said its Hyperliquid ETF attracted inflows of more than $5 million within days of its US launch.
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- 21Shares’ Hyperliquid ETFs recorded inflows of more than $5 million within days of their US launch on May 12.
- Elie Ndinga, head of research, said the fund generated nearly $8 million in trading volume in a single day last week.
- Ndinga says the demand for ultra-liquidity reflects a desire for 24/7 access to the cryptocurrency, oil, silver and gold markets.
21Shares said early inflows into its Hyperliquid ETF signal investor demand for around-the-clock access to cryptocurrency and traditional markets, with the fund raising more than $5 million within days of its US debut.
Elie Ndinga, Global Head of Research at 21Shares Argue That Hyperliquid priced the Iranian shock 48 hours earlier than traditional venues when the Chicago Mercantile Exchange closed, framing the protocol as critical 24/7 infrastructure.
The 21Shares Hyperliquid ETF launched on the Nasdaq on May 12 as the first US-listed product tied to HYPE, along with a 2x leveraged version under the ticker TXXH.
Betting on permanent financial markets
Hyperliquid’s appeal extends beyond cryptocurrencies, Ndinga said, citing traders’ 24-hour access to oil, silver and gold markets. He described the platform as “going beyond the crypto story,” placing it within a broader financial innovation story of traditional finance professionals who increasingly recognize the value of always-on infrastructure.
He cited pre-IPO token activity linked to AI chipmaker Cerebras as one example of traders using Hyperliquid to gauge demand ahead of a public listing.
Bitwise enters the race within days
The Hyperliquid ETF market is already crowded. Bitwise launched its rival BHYP product on the NYSE on May 15, and more recently pledge 10% of the management fee for HYPE token purchases on its balance sheet. Combined flows to the two products have exceeded $5.6 million since their launch.
Ndinga said 21Shares differentiates itself through expertise in managing staking-enabled exchange-traded products, relying on external staking providers rather than internal infrastructure to improve transparency and reduce conflicts of interest.
Hyperliquid’s dominance continues to grow
Hyperliquid handles nearly $8 billion in daily trading volume and represents more than 50% of open decentralized perpetual futures, according to figures cited in 21Shares launch documents. The protocol generates over $56 million in monthly trading fees, with over 95% going to HYPE’s daily buybacks.
HYPE was trading at around $45 on May 18 afterward Re-entry A bullish wedge pattern, having recovered more than 100% from January lows near $22. Previous 21Shares Instant Product He releases The company generated approximately $1.8 million in trading volume on the first day, with $1.2 million in net inflows.
Regulation remains the declining state
Ndinga identified regulatory scrutiny and competing trading platforms as the main risks facing Hyperliquid. The protocol is not directly available to US users and access is restricted in some jurisdictions to comply with local laws and sanctions requirements.
CME Group and Intercontinental Exchange have urged US regulators to examine Hyperliquid for potential market manipulation and sanctions compliance concerns, citing the impact of decentralized offshore venues on perpetual futures markets.
Ndinga said proposed US cryptocurrency legislation, including the CLARITY Act, could eventually provide clearer rules for decentralized trading platforms.
