ETF investors favor Solana, XRP and Hyperliquid as Bitcoin funds bleed $64M

Spot Bitcoin exchange-traded funds posted $64.09 million in net outflows on June 15 even as products tracking Solana, XRP and Hyperliquid drew fresh demand, signaling a rotation into alternative crypto assets.

"Bitcoin ETF holders have been selling to free up cash to enter the SpaceX IPO," Geoff Kendrick, global head of digital assets at Standard Chartered, said. With the IPO now trading, that forced selling should fade, though Bitcoin funds still bled on the first day of the week.

Ethereum ETFs recorded $22.50 million in inflows on June 15, while Hyperliquid funds added $17.19 million, according to flow data. Solana and XRP products took in $2.81 million and $2.82 million, respectively. Solana-focused ETFs also recorded $2.99 million in inflows on Thursday, bringing weekly inflows to $7.11 million, and Morgan Stanley submitted an amended S-1 filing for its proposed spot Solana ETF (MSOL), signaling continued institutional product development.

The rotation reflects a broadening of institutional crypto exposure beyond Bitcoin and Ethereum. Bitcoin dominance slipped from 56.79% on June 10 to 56.06% by June 16, while the "Others" category — tracking every coin outside Bitcoin, Ether and stablecoins — rose from 21.23% to 23.14%, CoinGecko data shows. Falling stablecoin dominance from 12.87% to 11.98% suggests sidelined cash is being deployed rather than parked.

HYPE demand signals platform-driven rotation

Hyperliquid's HYPE ETF products drew $17.19 million on June 15, the clearest example of demand tied to platform utility rather than passive allocation. Since launch, spot HYPE ETFs have attracted about $153 million in net inflows and nearly $900 million in trading volume across three products: 21Shares' THYP, Bitwise's BHYP and Grayscale's HYPG. About 434 million HYPE, or roughly 45% of the stakeable supply, is staked.

The platform runs perpetual futures on traditional assets most stock traders cannot easily reach. Its permissionless HIP-3 framework lets builders list perps on oil, forex, equities and private companies before they go public. The SpaceX contract, listed as SPCX in May, became the main price-discovery venue before the June 12 debut, with aggregate open interest above $215 million. Hyperliquid's HIP-3 markets hit roughly $3.2 billion in peak open interest in June, according to a Grayscale research note.

Solana price under pressure despite institutional inflows

Despite the ETF inflows, Solana's spot price remains weak. SOL traded at $68 on Friday, down for four consecutive days and below the key $70 level. Open interest has declined to $4.79 billion from $5.18 billion earlier in the week, Coinglass data shows, indicating waning speculative activity. Long liquidations totaled $15.02 million over the past 24 hours, far exceeding $1.52 million in short liquidations.

The next major support lies near the fair value gap between $46.90 and $51.12 formed in November 2023. Before that level, bulls would likely defend $60.13 and the June 6 low of $59.16. For bullish momentum to re-emerge, buyers must first reclaim $75.63, with a stronger confirmation requiring a weekly close above the overhead resistance trendline near $83.50.

Tim Sun, senior researcher at HashKey Group, said the reopening of the Strait of Hormuz has eased some pressure on risk assets but is insufficient to reverse the current downtrend. "For a true structural trend reversal, the market requires more than geopolitical easing; it specifically needs a resumption of consistent spot buying and the return of ETF capital inflows," Sun said.

Continued inflows into altcoin ETFs will separate a genuine rotation from a one-day split that Bitcoin's next wave of buying erases.

This article is for informational purposes only and does not constitute investment advice.