21Shares says Hyperliquid ETF pulled $5M in days

21Shares said its Hyperliquid ETF drew more than $5 million in inflows within days of its U.S. launch.

21Shares said early inflows into its Hyperliquid ETF point to investor demand for around-the-clock access to crypto and traditional markets, with the fund pulling in more than $5 million within days of its U.S. debut.

Eli Ndinga, global head of research at 21Shares, argued that Hyperliquid priced the Iran shock 48 hours ahead of traditional venues when the CME was closed, framing the protocol as critical 24/7 infrastructure.

The 21Shares Hyperliquid ETF launched on Nasdaq on May 12 as the first U.S.-listed product tied to HYPE, alongside a 2x leveraged version under the ticker TXXH.

A bet on always-on financial markets

Ndinga said Hyperliquid’s appeal goes beyond crypto, citing trader access to oil, silver and gold markets around the clock. He described the platform as “beyond a crypto story,” framing it as a broader financial innovation story for traditional finance professionals who increasingly recognize the value of always-on infrastructure.

He cited pre-IPO token activity tied to AI chipmaker Cerebras as one example of traders using Hyperliquid to gauge demand before public listings.

Bitwise enters the race within days

The Hyperliquid ETF market is already crowded. Bitwise launched its competing BHYP product on NYSE on May 15, and recently pledged 10% of its management fee toward HYPE token purchases on its balance sheet. Combined inflows into the two products have topped $5.6 million since launch.

Ndinga said 21Shares differentiates itself through experience managing staking-enabled exchange-traded products, relying on third-party staking providers rather than in-house infrastructure to improve transparency and reduce conflicts of interest.

Hyperliquid’s perp dominance keeps growing

Hyperliquid handles roughly $8 billion in daily trading volume and accounts for more than 50% of decentralized perpetual futures open interest, according to figures cited in 21Shares’ launch documents. The protocol generates more than $56 million in monthly trading fees, with over 95% directed toward daily HYPE buybacks.

HYPE traded around $45 on May 18 after reentering a bullish wedge pattern, having recovered more than 100% from January lows near $22. The earlier 21Shares spot product launch generated about $1.8 million in first-day trading volume, with $1.2 million in net inflows.

Regulation remains the bear case

Ndinga identified regulatory scrutiny and rival trading platforms as the main bear-case risks for Hyperliquid. The protocol is not directly available to U.S. users and restricts access in certain jurisdictions to comply with local laws and sanctions requirements.

CME Group and Intercontinental Exchange have urged U.S. regulators to scrutinize Hyperliquid over potential market manipulation and sanctions compliance concerns, citing the influence of decentralized offshore venues on perpetual futures markets.

Ndinga said proposed U.S. crypto legislation, including the CLARITY Act, could eventually provide clearer rules for decentralized trading platforms.