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 analyst, described this volume pattern as “very rare,” noting that most new ETFs experience declining activity after their debut.
- The HYPE token has gained 120% since the beginning of the year and jumped 18.5% over the last 24 hours, currently trading around $56.
- Analytics from Santiment reveal a short squeeze occurred after traders took aggressive short positions on May 18-19, only to see prices rise instead.
- Futures open interest for HYPE has maintained levels exceeding $1.92 billion, with fresh market participants entering despite ongoing liquidations.
The native token of Hyperliquid, HYPE, has surged to $56, marking an 18.5% increase over the past day and an impressive 120% gain since January 2025, per CoinGecko figures.
This price surge correlates strongly with renewed institutional attention toward the token, primarily fueled by two recently launched US-based ETFs.
The two HYPE-focused exchange-traded funds — 21Shares’ offering (ticker: THYP) and Bitwise’s product (ticker: BHYP) — have collectively generated approximately $41 million in trading value since debuting this month.
On May 12, 21Shares introduced its fund with $1.2 million in initial net inflows. Bitwise entered the market two days later on May 14, attracting $750,000 in inflows.
Eric Balchunas from Bloomberg highlighted on X that this volume progression is “very rare.” He explained that typical ETF launches experience strong opening-day activity followed by a sharp decline. The HYPE ETFs, however, demonstrated the inverse pattern, with volume steadily building.
Balchunas linked this unusual behavior to market conditions: while traditional assets including equities, bonds, Bitcoin, and gold have experienced declines, HYPE has maintained its upward trajectory.
Short Position Liquidations Drive Price Action
Santiment, a blockchain analytics platform, revealed on X that market participants had taken substantial bearish positions against HYPE during May 18 and 19. Funding rate metrics displayed a pronounced negative spike, indicating widespread short position openings based on expectations of price declines.
Contrary to these expectations, prices continued their ascent. This development compelled short sellers to close their positions through buybacks, creating additional upward momentum — a textbook short squeeze scenario, according to Santiment’s analysis.
Futures open interest for HYPE continues hovering above $1.92 billion. Santiment observed that unlike standard liquidation cycles, fresh market participants continued establishing positions even while others faced forced exits.
Wednesday represented the peak inflow day for both funds. The 21Shares product absorbed $16.6 million, while Bitwise’s offering captured $8.8 million.
Technical Outlook Points to $60 Target
Cryptocurrency analyst AltcoinSherpa has projected that “$60 is probably next” for HYPE. He characterized the present $50 level as suboptimal for short-duration traders but appealing for position holders with extended timeframes, citing what he perceives as constrained downside exposure.
From a technical perspective, HYPE has maintained support within the $45 to $47 band. The Relative Strength Index has oscillated within the 50–65 corridor, remaining beneath the overbought level of 70. MACD metrics have displayed bullish convergence patterns.
Near-term resistance exists within the $50 to $52 zone. A decisive breakthrough above this region could establish a trajectory toward the prior peak near $59.
Grayscale submitted its HYPE ETF application in March. Blockchain monitoring service Lookonchain identified two wallets associated with Grayscale that acquired $25 million worth of HYPE during the previous week and subsequently staked those holdings.
At the time of publication, HYPE was trading near $51.62, reflecting an 8.36% gain over the preceding 24-hour period.
