‘Better than average’ – Hyperliquid ETF records $1.8M volume as HYPE drops

The first U.S. spot Hyperliquid [HYPE] ETF by 21Shares posted $1.8 million in trading volume during its debut on the 12th of May. Overall, the product raked in $1.2 million in daily net inflows.

However, Bloomberg ETF analyst James Seyffart noted the fund was initially seeded with about $725K. This capital, provided by the asset manager, ensures sufficient liquidity and smooth trading during the product’s launch.

Commenting on its performance, Seyffart added, 

However, the debut was pale compared to the Solana and XRP ETF launches. Notably, the Canary Capital XRP ETF did $58 million in trading volume while Bitwise’s SOL ETF raked in $57 million in their respective day 1 performance. 

That said, Grayscale also updated its spot HYPE ETF filing to include staking, meaning more ETFs will launch soon. Currently, 21Shares charges a 0.3% management fee. It remains to be seen whether fee wars will intensify as new products hit the market. 

HYPE price reaction muted

At press time, HYPE fell 4.2% to $40 despite the ETF debut.

This was not surprising, given Bitcoin’s [BTC] brief pullback on the 12th of May after the CPI data came in hotter than expected.The inflation shock dented risk‑on sentiment and dragged the broader crypto market, including HYPE, lower. 

Still, the altcoin was above its 200-day Simple Moving Average (SMA), a key bullish support level. Provided the price action stays above this crucial level with strong whale demand, HYPE could still attempt to push forward and eye $50. 

In other words, if the immediate support zone at $40 (white zone) breaks, bulls may attempt to backstop the pullback at $34 (which aligns with the 200-day SMA). 

Should the two support levels fail, then the HYPE market structure will effectively flip to bearish, giving short sellers more fuel to drag the altcoin lower. 

Final Summary

• • The U.S.’s first spot HYPE ETF saw $1.8 million in trading volume during its debut. 
• However, HYPE price declined by 4% to $40 amid a broader market pullback after hotter-than-expected U.S. inflation data.