Bitcoin and Ethereum ETFs bled $112M on Monday even as two Hyperliquid-linked ETFs extended an eight-day buying streak, underscoring a widening split in institutional demand between legacy crypto products and newer, high-growth infrastructure plays.
What happened
- SoSoValue data shows Bitcoin ETFs led the outflows with $105.2 million pulled on Monday, while Ethereum ETFs saw $6.7 million leave.
- At the same time, two Hyperliquid ETFs recorded their eighth consecutive day of net inflows, adding $10.95 million on Monday. The streak started May 13 with a $1.17 million net addition and has included daily flows from $4.4 million up to a $25.5 million peak on May 20.
Bigger picture: last week’s capital flight
- CoinShares reports digital-asset investment products suffered $1.47 billion in outflows last week — the third-largest weekly total of 2026.
- Bitcoin ETFs accounted for $1.315 billion of that, the largest weekly outflow of the year, while Ethereum funds lost $223 million.
- CoinShares links the risk-off mood in part to geopolitical tensions around the Iran conflict and notes outflows weren’t confined to the U.S., extending to Switzerland, Canada and Hong Kong.
Why Hyperliquid is bucking the trend
- Interest in Hyperliquid products has been buoyed by a sharp run-up in the HYPE token: it hit a new all-time high of $64.21 on Sunday after jumping nearly 50% over the past month and more than 140% year-to-date.
- Institutional support has helped power the move. Bitwise, for example, is directing 10% of management fees from its new Hyperliquid ETF (BHYP) into buying and holding HYPE on its corporate balance sheet — a move that has resonated with some investors.
Market dynamics and risks
- Tim Sun, senior researcher at HashKey Group, told Decrypt the ETF outflows for Bitcoin and Ethereum are being driven by price action and rising U.S. Treasury yields. He said BTC has fallen below the average purchase price of some ETFs, prompting selling pressure, while an upward shift in the Treasury yield curve has dampened arbitrage appetite.
- Options data, Sun added, points to a market in "wait-and-see" mode: investors are mainly buying downside protection and trimming risk rather than placing large directional bets.
- He also warned that Hyperliquid faces mounting regulatory scrutiny. The CME Group and ICE have jointly urged Congress to examine the platform, highlighting growing regulatory risk — even as that scrutiny underscores Hyperliquid’s outsized trading volume and business footprint.
Price and sentiment snapshot
- Bitcoin was trading around $77,140, down 0.3% over 24 hours, per CoinGecko.
- On Myriad, the prediction market owned by Decrypt’s parent Dastan, users now put a 74% probability on Bitcoin next retesting $84,000 instead of plunging to $55,000 — down from 86% on May 14, reflecting BTC’s slide from about $81,700 to $74,500 last weekend.
Bottom line: institutional flows show a bifurcated market. Legacy Bitcoin and Ethereum ETFs are under pressure amid macro and geopolitical headwinds, while newer Hyperliquid-linked products are still attracting capital thanks to token rallies and novel institutional backing — though regulatory risks remain a key caveat.
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