JPMorgan Says Inflows Into Hyperliquid ETF Have All but Stopped as Exchange Competition Heats Up

Inflows into Hyperliquid’s HYPE exchange-traded fund have effectively stalled as competition among cryptocurrency exchanges intensifies, according to a JPMorgan analysis.

CoinDesk reported on Aug. 6 that JPMorgan said in a report released the same day that inflows into spot Hyperliquid ETFs have slowed sharply since last month. Decentralized platforms such as Hyperliquid are expected to face major challenges in gaining market share, the bank wrote.

JPMorgan attributed weaker demand for Hyperliquid ETFs to intensifying competition among exchanges. In particular, the recent approval of cryptocurrency perpetual futures trading in the US has significantly strengthened the competitiveness of centralized exchanges, or CEXs. That could drive a large shift in perpetual futures demand from decentralized exchanges, or DEXs, to centralized platforms.

The bank also cited growing competition in prediction markets, a business Hyperliquid entered as part of a diversification push, as another variable. In the Hyperliquid ecosystem, trading fees are an important foundation of token value. JPMorgan said the platform’s ability to secure users and trading volume in new businesses such as prediction markets could be a key factor in its future growth.

Meanwhile, Hyperliquid was trading at $55.22 as of 10:54 p.m. in Korea on Aug. 6, down 3.11% from a day earlier, according to CoinMarketCap. That was 23.12% lower than a month earlier.