Crypto fund flows are starting to collapse, with investors pulling out of Bitcoin. BTC$77,385.64 and Ether (ETH) exchange-traded funds (ETFs) while alternative tokens such as Hyperliquid’s hype (HYPE) and XRP (XRP) circulate.

Bitcoin ETFs saw more than $1 billion in outflows last week, fueling institutional pullbacks, while ether funds lost another $215 million, according to data source SoSoValue. The continued bleeding from the two largest assets signals a cooling appetite for broad, benchmark crypto exposure.

But redemptions have not been uniform.

Spot products investing in Hyperliquid’s hype token issued by Bitwise and 21Shares attracted a combined $72.38 million, underscoring that capital is being redeployed accurately rather than exiting the market entirely. XRP and sol ETFs registered inflows of $22 million and $15.6 million, respectively.

“The broader message: capital hasn’t left crypto uniformly. It’s moving toward a new narrative and away from crowded large-cap exposure,” Timothy Maser, head of research at BRN, said in an email.

The hype is real.

The massive surge for Hype ETFs, which went live a week ago, coincided with a rally in the token’s price and strong network activity.

According to data from CoinDesk, the token has jumped from $38 to $63 in the past 10 days. It’s up 59% for the month, a staggering performance compared to market leader Bitcoin’s 1% gain.

Decentralized platform Hyperliquid has earned $13.2 million in fees over the past seven days, the fifth-largest number, behind Tether and Circle Internet ( CRCL ) as well as stablecoin behemoths like Launchpad Pump. The Canton network ranks fourth, though, according to DeFiLlama, it’s driven largely by substantial incentives.

Hyperliquid’s revenue is expected to grow further, thanks to its recent agreement with Coinbase and Circle to integrate stablecoin USDC as a quoted asset.

Hyperliquid is fast emerging as a challenger to traditional trading platforms and prediction markets, some analysts say. And for good reasons: Since the Iran war broke out in late February, the platform’s HIP-3 market has consistently handled millions of trading volumes in fixed futures linked to conventional and real-world assets (RWA) such as oil, gold and US equity indices.

“Hyperliquid fundamental metrics are strengthening across the board as HIP-3 markets hit new weekly highs at 2.6B on open interest in RWA perp markets. HIP-4 started results markets for more modest growth a few weeks ago,” data tracking website Artemis said in a weekly newsletter.

“The equity perpetuals, pre-IPO markets and prediction markets are all in very early innings, and Hyperliquid is well-positioned to capitalize on that momentum,” Artemis said.