fire

Sherpa

Grayscale

Hyperliquid

<h3 id="key-highlights">Key Highlights</h3>
<ul>
 <li>Trading volume for HYPE ETFs from Bitwise and 21Shares surged 50%, bringing in a combined $25.5 million in net inflows during Wednesday’s session.</li>
 <li>Eric Balchunas, Bloomberg’s ETF analyst, characterized this volume expansion as “very rare,” noting that typical ETF launches experience declining activity after their debut.</li>
 <li>The HYPE token has soared 120% since January 1st and gained 18.5% over the last 24 hours, currently priced at $56.</li>
 <li>On-chain analytics from Santiment revealed a short squeeze emerged after concentrated short positioning during May 18-19 failed as prices continued their upward trajectory.</li>
 <li>Futures open interest for HYPE has maintained levels exceeding $1.92 billion, with fresh market participants establishing positions despite ongoing liquidations.</li>
</ul>
<p>Hyperliquid’s HYPE token has surged to the $56 level, registering an 18.5% increase over the trailing 24-hour period and a remarkable 120% gain throughout 2025, based on CoinGecko market data.</p>
<figure class="wp-caption aligncenter"><img src="https://blockonomi.com/wp-content/uploads/2026/05/chart-74-1.webp" alt="Hyperliquid (HYPE) Price" width="1824" height="1248">
 <figcaption><a href="https://www.coingecko.com/en/coins/hyperliquid?chart=type%3Dprice%26mode%3Dline%26timeframe%3Dd7" rel="noopener noreferrer nofollow">Hyperliquid (HYPE) Price</a>
 </figcaption>
</figure>
<p>This price appreciation has been strongly correlated with renewed institutional participation in the asset, sparked by the introduction of two US-listed exchange-traded funds.</p>
<p>The dual HYPE-linked ETF offerings — 21Shares’ THYP and Bitwise’s BHYP — have generated approximately $41 million in aggregate trading volume following their May debuts.</p>
<p>21Shares initiated its product on May 12, capturing $1.2 million in initial net inflows. Bitwise entered the market two days later on May 14 with $750,000 in inflows.</p>
<p>Eric Balchunas from Bloomberg ETF analysis highlighted on X that the volume trajectory was “very rare.” He emphasized that most newly launched ETFs experience strong opening-day activity followed by dramatic drop-offs. HYPE’s funds demonstrated the inverse pattern, accumulating volume progressively.</p>
<div class="embed-twitter">
 <blockquote class="twitter-tweet">
  <p><a href="https://twitter.com/search?q=%24THYP&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$THYP</a> &amp; <a href="https://twitter.com/search?q=%24BHYP&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BHYP</a> both with a 50% jump in volume (again) today, headed for a combined $40m in trading. A perfectly timed launch as EVERYTHING (stocks, bonds, gold, btc, cryptos) is down lately except the HYPE, which is up 27% since THYP's 5/12 launch. <a href="https://t.co/RBlXwu54jB" rel="noopener noreferrer nofollow">pic.twitter.com/RBlXwu54jB</a></p>
  <p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/2057178829974593720?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 20, 2026</a></p>
 </blockquote>
</div>
<p>Balchunas credited this unusual performance to market timing: while virtually all other asset classes — equities, fixed income, Bitcoin, and precious metals — experienced declines, HYPE maintained its upward momentum.</p>
<h3 id="aggressive-short-positioning-backfires">Aggressive Short Positioning Backfires</h3>
<p>Santiment, a blockchain analytics platform, detailed on X that market participants had taken substantial short positions against HYPE during May 18 and 19. Funding rate metrics displayed a pronounced spike into negative territory, signaling widespread bearish positioning with expectations of price depreciation.</p>
<div class="embed-twitter">
 <blockquote class="twitter-tweet">
  <p><img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f973.png" alt="🥳"> Hyperliquid’s native token, HYPE, just pushed back above $50 for the first time in roughly 8 months after traders aggressively bet against the rally on May 18th and 19th. Funding rate data across exchanges showed a major spike in negative funding, which usually means large… <a href="https://t.co/hUdSMhmpWf" rel="noopener noreferrer nofollow">pic.twitter.com/hUdSMhmpWf</a></p>
  <p>— Santiment Intelligence (@SantimentData) <a href="https://twitter.com/SantimentData/status/2057167542607609936?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 20, 2026</a></p>
 </blockquote>
</div>
<p>Contrary to these expectations, the token continued appreciating. This development compelled short sellers to close their positions through buyback orders, creating additional upward momentum — a textbook short squeeze scenario, per Santiment’s analysis.</p>
<p>Open interest across HYPE futures contracts continues hovering above $1.92 billion. Santiment observed that, departing from conventional liquidation patterns, fresh market participants maintained entry activity simultaneously with forced exits of existing positions.</p>
<p>Wednesday represented the peak inflow day for both fund offerings. The 21Shares product captured $16.6 million, while Bitwise’s fund secured $8.8 million in new capital.</p>
<h3 id="technical-analysis-points-to-60-target">Technical Analysis Points to $60 Target</h3>
<p>Cryptocurrency market analyst AltcoinSherpa has projected that “$60 is probably next” for HYPE. He characterized the present $50 range as suboptimal for short-duration trading strategies but appealing for position holders with extended time horizons, given what he perceives as constrained downside exposure.</p>
<div class="embed-twitter">
 <blockquote class="twitter-tweet">
  <p><a href="https://twitter.com/search?q=%24HYPE&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$HYPE</a> to $60 as next stop probably…this is going to prob keep grinding up as long as the market is uncertain as well bc ppl like to buy 'safer assets'. Prob wouldn't fire in this area as an active trade but if you're just buying and holding, I think you have to worry too much <a href="https://t.co/7LgfG4WH9n" rel="noopener noreferrer nofollow">pic.twitter.com/7LgfG4WH9n</a></p>
  <p>— Altcoin Sherpa (@AltcoinSherpa) <a href="https://twitter.com/AltcoinSherpa/status/2057060261421633871?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 20, 2026</a></p>
 </blockquote>
</div>
<p>From a technical perspective, <a href="https://coincentral.com/tether-usdt-casinos/" rel="noopener noreferrer nofollow">HYPE</a> has defended support within the $45 to $47 corridor. The Relative Strength Index has maintained positioning between 50 and 65, remaining beneath the 70 threshold that indicates overbought conditions. MACD technical indicators have generated bullish crossover formations.</p>
<p>Near-term resistance establishes itself between $50 and $52. A decisive breakout beyond this band could facilitate advancement toward the prior all-time high approaching $59.</p>
<p>Grayscale submitted regulatory documentation for a HYPE ETF in March. Lookonchain, an on-chain monitoring service, documented that two wallet addresses associated with Grayscale acquired $25 million worth of HYPE tokens during the preceding week and committed them to staking protocols.</p>
<p>HYPE was most recently exchanging hands at approximately $51.62, representing an 8.36% appreciation in the 24 hours preceding publication.</p>
<p>The post <a href="https://blockonomi.com/hyperliquid-hype-surges-past-56-as-etf-trading-volume-spikes-50/" rel="noopener noreferrer nofollow">Hyperliquid (HYPE) Surges Past $56 as ETF Trading Volume Spikes 50%</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.</p>

Hyperliquid (HYPE) Surges Past $56 as ETF Trading Volume Spikes 50%

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