HYPE hits new ATH as ETF momentum and institutional demand fuel rally

Key takeaways

HYPE hit a new all-time high of $75 on Tuesday, driven by rising institutional demand amid broader market weakness.
Grayscale has advanced plans to launch its spot Hyperliquid ETF HYPG this week.

Hyperliquid’s native token, HYPE, surged to a new all-time high of $75.52 on Tuesday, extending its recent rally as growing institutional interest and expanding ecosystem activity continue to drive demand.

Grayscale to launch a Hyperliquid ETF

A key catalyst behind HYPE’s latest gains is increasing competition in the exchange-traded fund (ETF) market. 

Grayscale is preparing to enter the race with a spot Hyperliquid ETF after filing an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC).

Bloomberg ETF analyst James Seyffart noted that the amendment suggests the fund could launch in the near future, potentially within days. 

The proposed ETF will trade under the ticker HYPG and carry a management fee of 0.29%, undercutting competing products.

Institutional appetite for HYPE has already been demonstrated by the success of Bitwise’s Hyperliquid ETF, BHYP. The fund attracted roughly $20 million in inflows on Friday, marking its largest single-day inflow since launch.

After just 11 trading days, BHYP has surpassed $100 million in assets under management (AuM), supported by cumulative inflows of $81.8 million. The ETF has also generated average daily trading volumes of $35.1 million.

Bitwise has further aligned itself with the Hyperliquid ecosystem by committing to hold 10% of its annual management fees in HYPE tokens on its balance sheet for at least 12 months.

According to onchain analytics platform Lookonchain, Bitwise purchased an additional 336,474 HYPE tokens, valued at approximately $24.4 million, over the past 24 hours.

The latest acquisition highlights continued institutional accumulation as investors seek exposure to the rapidly growing Hyperliquid ecosystem.

Hyperliquid price outlook: HYPE retraces after reaching a new all-time high

Despite reaching a record high of $75.52 earlier in the day, HYPE was trading at $72.28 at the time of writing, up by 1% over the previous 24 hours. 

However, the token remains one of the strongest-performing digital assets as institutional adoption and ETF-related demand continue to accelerate.

The RSI of 65 shows that HYPE is bullish but is yet to enter the overbought region, creating room for further growth.

If the bullish trend persists, HYPE could extend its rally and create a new all-time high around the $80 level.

However, if the pullback extends, HYPE could retest the Sunday low of $67. An extended bearish trend could see HYPE drop below $60 for the first time since May 28.