In today’s crypto news, institutional demand for Hyperliquid’s HYPE token is accelerating rapidly despite continued weakness across the broader crypto market. According to blockchain analytics platform Arkham Intelligence, 21Shares and Bitwise’s HYPE ETFs purchased a total of $68 million HYPE tokens last week.
21Shares and Bitwise Bought Massive Amounts of HYPE
On-chain data from Arkham revealed major inflows into Bitwise’s BHYP fund and wallets associated with 21Shares’ THYP ETF. The transactions included several million-dollar transfers over the past week from exchanges like Coinbase, FalconX, and Flowdesk. Meanwhile, 21Shares’ supply came exclusively through proprietary trading firm Flow Traders.
Among the largest purchases, Bitwise-related wallets transferred roughly 117,744 HYPE worth approximately $7.04 million and another 102,044 HYPE valued at around $5.76 million into Hyperliquid system addresses. Several additional transfers ranged between roughly $1 million and $4 million each.
During that period, 21Shares clients bought a total of 14,177 HYPE tokens, worth $774,690 at $54.64 per token. Conversely, Bitwise’s BHYP bought roughly 1.23 million HYPE tokens, at a total value of $67.23 million.
At the time of writing, 21Shares’s THYP ETF holds 214,196 HYPE tokens, worth $13.11 million at current prices. Bitwise’s holdings currently sit at 159,147 HYPE tokens and $9.86 million, having staked over $22.37 million of the tokens it bought. Meanwhile, both firm’s portfolios include substantial holdings of Bitcoin, Ethereum, Solana, and Chainlink.
Institutional Rotation Appears Increasingly Selective
HYPE’s increased institutional accumulation trend highlights a broader shift happening across crypto markets. Rather than flowing evenly into all altcoins, institutional capital is concentrating in sectors showing strong revenue growth, user adoption, and relative strength.
The divergence has become increasingly noticeable. While Bitcoin ETFs suffered roughly $1.26 billion in weekly outflows and Ethereum ETFs lost another $216 million, HYPE-related products continued attracting fresh capital from institutional investors. Additionally, HYPE-based products surpassed Solana and XRP ETF inflows, which gained $15.6 million and $22.03 million in the same period respectively.
The divergence reflects how institutional investors are becoming more selective during this market cycle. Projects tied to AI, decentralized perpetual futures, tokenization, and real-world revenue generation are currently attracting the strongest capital flows.
Altcoin Rotation Favoring HYPE Dominance
HYPE has emerged as one of the strongest-performing major altcoins of 2026. The token has surged roughly 30% over the past week and approximately 57% over the past month. Thanks to that rally, HYPE climbed to a new peak at $64.32 just two days ago, outperforming much of the broader crypto market. The breakout also pushed Hyperliquid’s market capitalization to $15.73 billion while daily trading volume currently sits above $708 million.
Meanwhile, Bitcoin consolidates near $77,000, Ethereum persists below $2,200, and most other major assets struggle to regain momentum.
Several major narratives are driving HYPE’s rally. Hyperliquid dominates the decentralized perpetual futures sector and has rapidly expanded trading activity across crypto markets. The protocol also generates strong fee revenue from that activity explosion. Additionally, the project implemented aggressive token buyback mechanisms that many traders view as bullish for long-term supply dynamics.
As the broader market remains volatile, traders will closely watch how institutional ETF demand affects HYPE and if the token pushes toward another major breakout.
Temitope Olajide
