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Surprisingly high institutional demand is being drawn to Hyperliquid, with daily inflows into the United States. Despite the stark disparity in the market capitalizations of the two assets, $HYPE ETFs are outperforming $XRP products.
Hyperliquid wins ETF race
The most recent ETF data shows that one-day net inflows for $HYPE products were about $24.42 million. During the same time frame, $XRP ETFs received $18.47 million. This puts $HYPE's daily intake about 32% higher than $XRP's, which is an odd outcome given $XRP's significantly larger market share.
When market capitalization is taken into account, the comparison is even more remarkable. $HYPE is worth about $18.52 billion, while $XRP is worth $89.19 billion. However, compared to $XRP's five listed ETF products, $HYPE's three attracted more new capital. This may be a sign of increased investor demand for higher-beta exposure in the wake of the wider cryptocurrency rebound.
The price performance of $HYPE is consistent with that interpretation. After reaching about $86, the asset is currently trading at $83.20, continuing a breakout that started at $57 earlier this month. It is still well above its major moving averages and has already decisively moved past earlier highs of around $75.
But from a technical standpoint, the trade has gotten crowded. $HYPE is in overbought territory with an RSI of about 74. There is a significant distance between the price and the immediate dynamic support, with its closest short-term moving average located at about $69.30.
$XRP's rally struggles
$XRP presents a distinct configuration. After an explosive rally from about $1.00 and a rejection near $1.70, the asset is currently trading at about $1.42. Although $XRP is still above its long-term moving average at $1.35, the momentum has obviously decreased. Important context is also provided by longer-term ETF flows.
Over the past 30 days, $XRP has drawn about $141.61 million, and $1.64 billion in total. $HYPE has a 30-day total of $51.24 million and a cumulative total of $343.48 million. As a result, $HYPE has not surpassed $XRP in terms of total institutional demand. The comparison of $24.42 million and $18.47 million represents only one day's flows.
Nevertheless, the daily reversal is noteworthy. Risk appetite appears to be growing beyond established large-cap cryptocurrency exposure, as investors are currently willing to devote significant capital to the smaller and more volatile $HYPE market.