Hyperliquid (HYPE) token fell below $60 following the unstaking of approximately $291 million worth of tokens by two major crypto funds. Multicoin unstaked close to 2 million HYPE, worth about $120 million, while Paradigm unstaked 2.92 million HYPE, worth around $171 million. The unstaking freed these tokens for potential sale, though both funds deny selling intentions. Multicoin cofounder Tushar Jain stated the fund unstaked HYPE but not to sell it, citing the need for institutional privacy and regular wallet rotations. On-chain monitoring by MLM revealed that Paradigm unstaked even more tokens, with some coins moving to Coinbase Prime custody service and one group sending about 1 million HYPE to Grayscale to help fill its new Hyperliquid ETF, HYPG, which began trading on Nasdaq in June.
Spot Hyperliquid (HYPE) exchange-traded funds recorded their first weekly outflow since launching in May, according to SoSoValue data. The funds shed $7.26 million in the week ending July 17, ending a run of 9 consecutive inflow weeks. This marked the first decline in the token's ETF performance since the product's debut, cutting cumulative net inflows from $308.6 million to $301.34 million. Net assets fell 12.7% to $306.03 million during the outflow period, with the gap between modest cash outflows and double-digit percentage declines in assets highlighting how much of the fund's valuation swing was driven by mark-to-market losses rather than investors pulling money.
While HYPE funds experienced outflows, the largest crypto funds moved in the opposite direction. Bitcoin ETFs drew $75.67 million, marking their second straight positive week after 8 consecutive weeks of outflows. Ethereum ETFs added $105.44 million, their strongest weekly haul since late April. XRP funds gained $6.78 million and Solana products collected close to $1 million, as reported by SoSoValue data. Combined, the four major fund groups attracted over $188 million during the week, with the contrast between HYPE's $7.26 million redemption and the broad ETF complex's expansion highlighting how allocators concentrated fresh capital in liquid, index-anchored exposures while the newer, higher-beta HYPE product absorbed the outgoing tide.
HYPE has dropped over 8% in the past week, making it the biggest loser among the top 10 cryptocurrencies. The token fell below $60 and is currently trading near the low-$60s, representing a 24% decline from its June record of $76.70. The selloff coincided with the unstaking activity and broader risk-off move across altcoins, though HYPE underperformed the total market cap, which stayed roughly flat over the same period. Trader Elon Trades noted that HYPE usage barely changed, pointing to its growing derivatives market share and steady revenue. However, more coins may soon hit the market as unstaking takes about seven days, with most tokens unlocking near the end of July, creating potential supply pressure.
Whether ETF investors return may depend on how the token holds its current support level and the outcome of the recent unstaking activity. The $60.66 price level represents a key technical level for HYPE's recovery prospects. The fund outflow shadowed a rough stretch for the token itself, with the pattern suggesting capital was not fleeing crypto broadly but rotating toward the most established names. In a bear market tape, capital typically retreats from higher-volatility tokens first, and Hyperliquid's dual weakness in price and fund flows fits that template cleanly. The project's fundamentals look solid, but the HYPE unstaking still hangs over the price, requiring HYPE to climb back above $60 to recover.
