Institutional Money Is Creating A Supply Shock For HYPE

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The recent rally in Hyperliquid is not being driven by retail speculation alone. Analysts say institutional ETF demand is now buying HYPE faster than the protocol itself can remove supply from circulation. Over the first several trading sessions, the new spot ETFs reportedly purchased more than double the amount of HYPE burned through Hyperliquid’s buyback mechanism.

This dynamic is creating a powerful combination of reduced circulating supply and growing institutional accumulation. On top of that, Grayscale may also enter the market with its own spot HYPE ETF after filing registration documents earlier this year. If another major asset manager launches a competing product, buying pressure on the token could increase even further as traditional finance continues expanding deeper into alternative crypto assets.

[nihalsari]

if grayscale launches its own spot hype etf the market could see another wave of institutional accumulation similar to what happened with bitcoin spot etfs on a smaller scale

[nihalsari]

every short seller right now learning the ancient crypto lesson
the market can stay irrational longer than your leverage survives