The divergence highlights a growing split in institutional appetite: legacy crypto funds are bleeding capital amid macro uncertainty, while newer products tied to Hyperliquid’s high-growth infrastructure thesis continue to attract demand.
Bitcoin ETFs alone saw $1.315 billion in outflows, the largest weekly outflow of the year, while Ethereum funds recorded $223 million in outflows. CoinShares attributed the risk-off sentiment to ongoing geopolitical tensions related to the Iran conflict, with outflows extending beyond the U.S. to Switzerland, Canada, and Hong Kong.
The uptick in HYPE ETF flows comes as the token hit a new all-time high of $64.21 on Sunday, following a 2026 performance that has seen the token surge nearly 50% over the past month and clock over 140% year-to-date gains.
The rally follows a successful launch of HYPE ETFs and institutional support, especially from Bitwise, which allocated 10% of the management fees from its newly launched Hyperliquid ETF (BHYP) to directly purchase and hold HYPE on its corporate balance sheet.
Despite the contrasting flows, Tim Sun, senior researcher at HashKey Group, told Decrypt that the ETF outflows from Bitcoin and Ethereum are being driven by a combination of price action and rising Treasury yields. ”Bitcoin’s price has actually dropped below the average purchase price of the ETFs, triggering a certain degree of selling pressure,” he said. ”Additionally, because the U.S. Treasury yield curve has shifted upward as a whole, it has suppressed the appetite for arbitrage capital.”
Sun added that the market is in a wait-and-see period, with options data showing no clear directional preference from either institutional or retail investors. ”The market is primarily buying downside protection and reducing risk exposure, rather than making large-scale bets on a one-way crash or a rapid rebound,” he said.
On Hyperliquid’s prospects, Sun cautioned that regulatory hurdles remain significant despite the platform’s growth. ”The CME and ICE recently jointly pressured Congress to call for scrutiny over it. Regulatory risks not only exist but are continuously growing,” he said. ”Conversely, though, this also proves that Hyperliquid’s own trading volume and business performance are remarkably prominent.”
