Bitcoin is cratering, but a new Wall Street crypto hype is on the rise

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 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 BHYP and THYP , 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. Grayscale launched its own Grayscale Hyperliquid Staking ETF (HYPG) on Wednesday. "This is a market that's 1% penetrated into its potential market. Most people still don't know what hyperliquid is," Bitwise Matt Hougan chief investment officer told CNBC. 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. …