Hyperliquid ETFs Rally as Ethereum Leaders Exit

Hyperliquid’s new U.S.-listed ETFs gained traction in their first week, with the HYPE product up about 50% and the platform recording roughly $11 million in on-chain fees during the debut trading period.

Data from the week showed Hyperliquid captured a large share of fee revenue across crypto, with early inflows that outpaced those into Bitcoin ETFs in the same period. Market participants noted strong retail interest and rapid fee generation. Some industry executives described the product as a “super app” aimed at large global asset pools. Others warned the rapid uptake would draw attention from established financial firms, including the CME, and create competitive pressure.

The ETF debut coincided with staffing changes at the Ethereum Foundation. Eight senior researchers left the foundation in 2026, five of those departures occurring in May. In March, the foundation published the CROPS mandate, redefining its role as a steward of cypherpunk values rather than an organization focused on promoting ETH market share.

A prominent Ethereum-focused media and advocacy outlet announced a major reorganization in the same period. One co-founder said he would step back from day-to-day responsibilities and transfer operational control to his partner. That partner, David Hoffman, disclosed that he had sold his remaining ETH and wrote, “ETH the asset is increasingly questionable.” The outlet also reduced headcount substantially, laying off a majority of its staff.

On the market front, Ether has underperformed broader crypto benchmarks this year, down roughly 26% year-to-date. The ETH staking ratio rose to about 31% this week, indicating continued staking activity among holders. Analysts pointed to multiple factors behind ETH’s price weakness, including a historically strong inverse correlation between ETH returns and spikes in oil prices as U.S. crude inventories tightened.

Bitcoin fell below the $80,000 level during the week and traded near $77,000 by Friday. Observers flagged slowing ETF inflows, technical resistance and crowded long positions as elements that reduced near-term upside momentum for Bitcoin.

Industry reactions to Hyperliquid were mixed. Supporters highlighted the product design and rapid market adoption. Some market commentators warned that the launch had “poked the hornet’s nest,” predicting increased scrutiny and competition from legacy market participants. Solana ecosystem activity and new decentralized exchanges also drew attention as traders weighed alternative venues.

Market participants identified immediate issues to watch: whether Hyperliquid can sustain early flows amid competition and regulatory scrutiny, and whether new organizations or changes among contributors will emerge to address asset-related priorities for Ethereum. The week’s developments combined rapid product adoption on one front with leadership and staffing changes on another, producing notable shifts in market attention and community discussion.