Crypto ETF Flows Suggest De-Risking Over Rotation

Investors pulled $2.5 billion from Bitcoin and Ethereum ETFs through June 18, but Hyperliquid and XRP still attracted buyers. The outflows from these core crypto products were largely due to investors de-risking their portfolios rather than rotating into altcoins.

According to recent data, HYPE and XRP funds drew less than $75 million combined in inflows during the same period. This suggests that investors are cautious about pouring more money into cryptocurrency investments as macroeconomic concerns weigh on markets.

The Hyperliquid ETF (BHYP) launched on May 14 and has attracted around $189 million in cumulative inflows through June 18, despite being a relatively new product with fewer than 25 trading sessions. This persistent demand is seen as a concentrated institutional bet on the potential of on-chain derivatives infrastructure.

Meanwhile, XRP spot ETFs added $10.6 million during the June 14-18 trading week, with cumulative inflows reaching about $1.5 billion and total net assets across the category at roughly $995 million. This recurring demand is attributed to existing holder base seeking regulated access to the asset.