{"id":3939,"date":"2026-06-06T14:39:52","date_gmt":"2026-06-06T14:39:52","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/bitcoin-is-crashing-but-a-new-wall-street-crypto-hype-is-on-the-rise\/"},"modified":"2026-06-06T14:39:52","modified_gmt":"2026-06-06T14:39:52","slug":"bitcoin-is-crashing-but-a-new-wall-street-crypto-hype-is-on-the-rise","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/bitcoin-is-crashing-but-a-new-wall-street-crypto-hype-is-on-the-rise\/","title":{"rendered":"Bitcoin is crashing, but a new Wall Street crypto hype is on the rise"},"content":{"rendered":"\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108314862\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108314862\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000414601\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In one very small, and at least to date obscure, corner of the crypto market, investors are rushing in rather than heading for the exits. So-called HYPE exchange-traded funds are taking in new assets from investors at a time when the leading crypto bets, including <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-2\">bitcoin<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-3\">ether<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, are tanking. <\/p>\n<p>In May, Bitwise and 21shares launched spot ETFs tracking indexes for HYPE, a decentralized crypto asset that operates on its own blockchain, hyperliquid. The products, which trade under the tickers <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-5\">BHYP<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-6\">THYP<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, have raised close to $150 million in assets and since launch have mostly experienced positive net inflow days, something that caught the attention of Nate Geraci, president of NovaDius Wealth Management.<\/p>\n<p>Grayscale launched its own Grayscale Hyperliquid Staking ETF (HYPG) on Wednesday.<\/p>\n<p>&#8220;This is a market that&#8217;s 1% penetrated into its potential market. Most people still don&#8217;t know what hyperliquid is,&#8221; Bitwise Matt Hougan chief investment officer told CNBC.<\/p>\n<p>Hyperliquid is a decentralized perpetual futures exchange that is built on blockchain. It operates around the clock for traders outside the United States. It existed quietly until last summer, when the U.S.-Iran war sent traders scrambling for weekend access to oil markets. Volume quickly reached roughly $1 billion a day in crude oil alone, said Stephen Coltman, 21shares vice president and head of macro.<\/p>\n<p>For a token most financial advisors and investors had never heard of a month ago, the reception has been hard to ignore, especially at a time when bitcoin is experiencing a steep selloff. Spot bitcoin ETFs have been bleeding assets. The iShares Bitcoin Trust ETF (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-10\">IBIT<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>), for example, ended the week down around 16%.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"IBIT 5 Day\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=IBIT&amp;range=5D&amp;type=mountain&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" loading=\"lazy\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<p>IBIT 5 Day<\/p>\n<\/div>\n<div class=\"group\">\n<p>The HYPE inflows are less likely a rotation out of existing crypto than a move by investors into something genuinely new.<\/p>\n<p>&#8220;Hyperliquid is bringing new investors from outside of the crypto ecosystem into this particular digital asset. I think it speaks to a much different type of investor than bitcoin,&#8221; said Zach Pandl, Grayscale head of research. <\/p>\n<p>Pandl said investors are drawn to a revenue model they can understand. Most crypto tokens have an indirect relationship with the underlying platform activity, but hyperliquid is different.<\/p>\n<p>&#8220;In the case of hyperliquid, 99% of the fees generated on the platform go towards buying back HYPE, the asset,&#8221; Hougan said. &#8220;There is this very tight loop between the activity taking place in crypto and the value of the hyperliquid asset,&#8221; Hougan said.<\/p>\n<p>This is a market mechanism traditional equity investors would recognize immediately: the practice of public companies using their cash to buy back their own shares. &#8220;It&#8217;s very similar to a stock buyback, where all of the trading is generated and used to buy back the token,&#8221; Coltman said.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"256\" height=\"256\" viewbox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveaspectratio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\"\/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"\/><\/div>\n<\/div>\n<p><iframe title=\"Performance of hyperliquid ETFs since launch in May 2026.\" src=\"https:\/\/www.cnbc.com\/appchart?symbol=BHYP&amp;range=1M&amp;comp=THYP&amp;type=line&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" loading=\"lazy\" style=\"border:0;width:100%\"><\/iframe><\/p>\n<p>Performance of hyperliquid ETFs since launch in May 2026.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The ETF experts say these funds are a practical entry point for investors who want exposure without the complexity of setting up a digital wallet or navigating a decentralized exchange. <\/p>\n<p>As of Friday, the Grayscale Hyperliquid Staking ETF, which just launched, had $4.5 million in assets. 21shares Hyperliquid ETF has $75.8 million assets under management, while the Bitwise Hyperliquid ETF has $71.14 million.<\/p>\n<p>Geraci said as investors become more familiar with hyperliquid through the ETFs, it is reasonable to expect the products could help accelerate mainstream adoption of the platform itself.<\/p>\n<p>&#8220;I view spot crypto ETFs as an important bridge between TradFi [traditional finance] and DeFi [decentralized finance]. While it is difficult to determine the degree of overlap between HYPE ETF investors and hyperliquid users, the ETFs undoubtedly increase awareness of the platform,&#8221; he wrote in an email to CNBC.<\/p>\n<p>But the ETF experts cautioned that awareness is still low, competition is widespread, and risks remain high. <\/p>\n<p>21shares points to its track record, having listed a HYPE product in Europe, in August 2025. Grayscale has the lowest expense ratio, at 0.29%, versus 21shares at 0.30% and Bitwise at 0.34%. Bitwise has strong relationships with family offices.<\/p>\n<p>&#8220;Hyperliquid&#8217;s greatest challenge may be rising competition from both TradFi and DeFi, a dynamic that a more favorable regulatory environment could intensify,&#8221; Geraci wrote.<\/p>\n<p>The platform remains unavailable in the U.S., but Pandl said his expectation for approval is 2027, which he called &#8220;a reasonable timeline for when we could have sufficient regulatory clarity around decentralized exchanges that U.S. users could begin to access the platform.&#8221; <\/p>\n<p>The landscape may be considerably more crowded by then. The rapid hyperliquid ETF asset growth story shows that some investors are not waiting. <\/p>\n<div class=\"ArticleBody-blockquote\">\n<p>Sign up\u00a0for our weekly newsletter that goes beyond the livestream, offering a closer look at the trends and figures shaping the ETF market. <\/p>\n<\/div>\n<p>Disclaimer<\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"SpecialReportArticle-GooglePreferredSource-6\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In one very small, and at least to date obscure, corner of the crypto market, investors are rushing in rather than heading for the exits. So-called HYPE exchange-traded funds are taking in new assets from investors at a time when the leading crypto bets, including bitcoin and ether, are tanking. In May, Bitwise and 21shares [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[321,3515,325,2824,366,849,848],"class_list":["post-3939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-bitcoin","tag-crashing","tag-crypto","tag-hype","tag-rise","tag-street","tag-wall"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=3939"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/3940"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=3939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=3939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=3939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}