JPMorgan Warns HYPE Could Lose Ground to SOL, XRP as ETF Inflows Stall

by | Aug 6, 2026 | General

JPMorgan (NYSE:JPM) warned that Hyperliquid’s market share faces growing pressure from regulated U.S. platforms as ETF inflows stall.

Why HYPE ETFs Cooled After a Record Run?

Analysts led by managing director Nikolaos Panigirtzoglou said in a report cited by The Block that HYPE ETF inflows stalled in July and August, after posting their largest inflows ever in May and June as a percentage of assets under management.

The broader crypto ETF market tells the opposite story.

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) ETFs recorded heavy outflows in May and June before returning to small inflows in July and August.

Hyperliquid as measured by Hyperliquid Strategies Inc (NASDAQ:PURR) ETFs peaked exactly when the rest of the market was bleeding, making the current stall more noticeable by comparison.

JPMorgan said tracking ETF flows alongside Hyperliquid’s trading and prediction market share will be the key variables for HYPE’s outlook going forward.

The Two Threats JPMorgan Flagged

The first is the rise of regulated US crypto perpetual futures platforms.

JPMorgan said the launch of these products could pull liquidity away from offshore and decentralized venues toward onshore platforms.

Decentralized platforms also face concerns over unlicensed derivatives activity, limited KYC and AML controls, manipulation risk, and weaker consumer protections.

The second is prediction market competition.

Hyperliquid launched Outcomes, its prediction market-style contracts, in May, entering a space where competition from existing and new platforms is already intense.

“We see significant challenges to the market share of decentralized platforms such as Hyperliquid,” the analysts wrote. “Whether Hyperliquid eventually surpasses in market cap other tokens such as Solana and XRP remains to be seen,” they added.

Where HYPE Stands in The Broader Market?

HYPE is the fourth-largest asset held in corporate crypto treasuries behind Bitcoin, Ethereum, and Solana (CRYPTO: SOL), pointing to meaningful institutional conviction even as ETF flows cool.

Solana, XRP (CRYPTO: XRP), and Hyperliquid ETFs each hold between $2 billion and $3 billion in assets under management, keeping HYPE competitive in size but not in momentum.

Price Action: HYPE trades 1.5% lower Thursday at publication time.

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