J.P. Morgan Says Hyperliquid ETF Inflows Have Stalled as Rivals Gain Ground

Inflows into Hyperliquid exchange-traded funds have largely stopped after a strong run in May and June, J.P. Morgan said in a Thursday report. The bank pointed to rising competition from regulated derivatives platforms and crowded prediction markets as the main drag on demand.

Hyperliquid ETFs led non-Bitcoin crypto funds in inflows relative to assets under management during May and June. That momentum faded through July and into early August, according to the bank’s analysis.

Analysts Flag Mounting Pressure on Decentralized Platforms

J.P. Morgan analysts led by Nikolaos Panigirtzoglou addressed the shift directly in the report, writing:

“We see significant challenges to the market share of decentralized platforms such as Hyperliquid.”

The bank said the slowdown coincides with growing competition from regulated centralized exchanges rolling out their own crypto perpetual futures products. Those offerings could pull trading activity away from offshore decentralized venues, which remain exposed to questions around licensing, compliance and investor protections, the analysts wrote.

Prediction Market Expansion Adds Another Competitive Front

J.P. Morgan also pointed to intensifying competition in prediction markets, a category Hyperliquid has been expanding into as it looks to diversify beyond perpetual futures trading. Transaction fees from futures trading currently underpin much of the value attributed to Hyperliquid’s HYPE token.

The push into prediction markets represents an attempt to broaden Hyperliquid’s revenue base beyond its core derivatives business, though the bank’s report did not quantify how much of the current inflow slowdown stems from that expansion specifically.

HYPE Still Ranks Among the Largest Crypto Treasury Holdings

Despite the stalled ETF demand, Hyperliquid has been one of crypto’s standout performers in 2026. HYPE has grown into the fourth-largest asset held in corporate crypto treasuries, trailing only Bitcoin, Ether and Solana, according to the report.

Hyperliquid has grown into one of the largest crypto ecosystems outside Bitcoin and Ether, drawing institutional capital, corporate treasury buyers and ETF issuers over the course of the year, according to the report. J.P. Morgan said whether that momentum can continue against larger rivals such as Solana and XRP remains an open question.

Bitcoin and Ether Still Dominate the Broader ETF Market

Bitcoin and Ether continue to account for the large majority of assets in crypto ETFs, with roughly $77 billion and $10 billion under management, respectively, the report said. ETFs tied to other tokens, including Solana, XRP and Hyperliquid, collectively hold between $2 billion and $3 billion.

Hyperliquid’s ETF footprint remains far smaller than the market’s two largest tokens, even after a period of rapid inflow growth earlier in the summer. HYPE traded more than 3% lower over the prior 24 hours, near $55.30, at the time of the report.