Crypto Chaos: Bitcoin and Ether Are the New Unpopular Kids at the Party!

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Markets

What to know:

  • Investors yanked over $1 billion from bitcoin ETFs last week and over $215 million from ether funds, signaling waning appetite for broad large-cap crypto exposure. (Translation: “I’m out, but I’ll still DM you if I need a favor.”)
  • Instead, the capital is rotating into select altcoins, with new HYPE spot products drawing about $72 million and XRP and SOL ETFs attracting $22 million and $15.6 million, respectively. (Because nothing says “I’m a savvy investor” like betting on a token named after a 1990s slang term.)
  • Hyperliquid’s HYPE token has surged 59% this month amid rising fees and increasing trading volumes in RWA-linked markets on the platform. (Because who doesn’t want to invest in a token that’s basically a cryptocurrency version of “I’m feeling lucky”?)

Crypto fund flows are starting to fracture, with investors exiting bitcoin and ether (ETH) exchange-traded funds (ETFs) while rotating into alternative tokens such as Hyperliquid’s hype (HYPE) and XRP (XRP). (Because why stick with the tried-and-true when you can chase the next “meme”?)

Bitcoin ETFs saw more than $1 billion in outflows last week, extending a sharp institutional pullback, while ether funds lost another $215 million, according to data source SoSoValue. The continued bleeding from the two largest assets signals a cooling appetite for broad, benchmark crypto exposure. (Or, as your grandma would say, “I’m done with this rollercoaster.”)

But the redemptions haven’t been uniform.

Spot products investing in Hyperliquid’s hype token, issued by Bitwise and 21Shares, attracted a combined $72.38 million, underscoring that capital is being redeployed with precision rather than exiting the market altogether. XRP and sol ETFs registered inflows worth $22 million and $15.6 million, respectively. (Because nothing says “I’m diversified” like splitting your bets between a token named after a fruit and one named after a tropical drink.)

“The broader message: capital has not left crypto uniformly. It is rotating toward newer narratives and away from crowded large-cap exposure,” Timothy Misir, head of research at BRN, said in an email. (Or, as a teenager would say, “This is so 2021.”)

Hype is real

The strong uptake for hype ETFs, which went live a week ago, coincides with a sharp rally in the token’s price and robust network activity. (Because who doesn’t want to ride the hype train? Just don’t ask about the destination.)

The token has been on a tear, jumping from $38 to $63 in the past 10 days, CoinDesk data show. It has gained 59% for the month, a staggering performance compared with market leader bitcoin’s 1% gain. (Bitcoin: the slow and steady friend who’s still trying to figure out what “hype” means.)

Decentralized platform Hyperliquid has generated $13.2 million in fees over the past seven days, the fifth-largest tally, trailing stablecoin behemoths such as Tether and Circle Internet (CRCL) as well as launchpad Pump. Canton Network ranks fourth, though, according to DeFiLlama, that is largely driven by substantial incentives. (Because nothing says “I’m trustworthy” like offering incentives to users. Or maybe that’s just me.)

Hyperliquid’s revenue is expected to rise further, thanks to its recent agreement with Coinbase and Circle to integrate stablecoin USDC as a quote asset. (Because who doesn’t want to trade with a stablecoin that’s basically a cryptocurrency version of a safety net?)

Some analysts say Hyperliquid is rapidly emerging as a challenger to traditional trading platforms and prediction markets. And for good reasons: Since the Iran war began in late February, the platform’s HIP-3 market has consistently handled millions in trading volume in perpetual futures tied to traditional and real-world assets (RWA) such as oil, gold and U.S. equity indexes. (Because nothing says “I’m prepared for anything” like betting on oil and gold in a war zone.)

“Hyperliquid fundamental metrics continue to strengthen across the board as HIP-3 markets reached new weekly highs at 2.6B in open interest across RWA perp markets. HIP-4 launched outcome markets a couple of weeks ago to more modest growth,” data tracking website Artemis said in the weekly newsletter. (Because who needs modest growth when you can have “modest” growth?)

“Equity perpetuals, pre-IPO markets and prediction markets are all in the very early innings, and Hyperliquid is well positioned to capitalize on that momentum,” Artemis said. (Because nothing says “I’m a visionary” like betting on the early innings of a game you’ve never heard of.)

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2026-05-25 13:46