HYPE ETFs Lead Crypto ETF by Market-Cap Flow Index

Spot Hyperliquid exchange-traded funds captured 1.04% of HYPE's market capitalization in the first 10 trading days, giving it the strongest crypto ETF debut on a single market-cap-adjusted measure of demand, according to Kairos Research.

Kairos compared cumulative net flows to new space crypto ETF issuers against each underlying asset's initial capitalization. By this measure, the HYPE ETFs outperformed the Bitcoin, Ether, and Solana ETFs by absorbing 0.59%, 0.41%, and 0.31% of their respective market capitalizations, respectively.

The 21Shares Hyperliquid ETF ( THYP ) is up 50% since its launch two weeks ago, according to Bloomberg ETF analyst Eric Balchunas. Balchunas compared the pace to Roundhill's DRAM ETF, which took five weeks to gain 50%, and BlackRock's spot Bitcoin ETF, IBIT, which took two months, he said.

The data comes after US-based HYPE ETFs from Bitwise and 21Shares saw a pick-up in trading activity following a slow start to the Hypeliquid-linked fund.

The comparison does not mean that the HYPE ETF has raised more money than the Bitcoin or Ether ETF in absolute terms. The Kairos metric tracks GBTC and ETE flows to avoid redemptions of old trusts and focuses on demand from new issuers relative to each asset's market size.

Spot crypto ETFs are entered as a percentage of their market capitalization. Source: Kairos Research

HYPE leads the flow of altcoin ETFs as Bitcoin tops $2 billion.

According to SoSoValue data, HYPE ETFs recorded a net inflow of $6.89 million during the partial launch week of May 12 to May 15, and then rose to $68.02 million in net inflows for the week ending May 22.

Spot Bitcoin and Ether ETF moved in opposite direction at the same time. The Spot BTC ETF recorded net outflows of $1 billion in the week ending May 15 and $1.26 billion in the week ending May 22, bringing its two-week outflows to $2.26 billion. The SpotEther ETF saw $255.11 million and $215.99 million in the same period, SoSoValue said.

Related: Hyperliquid launches prediction markets for real-world events

Meanwhile, other altcoin-related spot ETFs also recorded positive flows, albeit below HYPE in the last full trading week. Spot XRP ETFs saw $22.04 million, while Solana posted $15.63 million in the week ending May 22.

Magazine: ETH Bearish Recovery, Tom Lee Buys, XRP ‘To Explode': Market Moves