Hedge Funds Rotate to Hyperliquid, Altcoins as Bitcoin and Ether Remain Range-Bound

Hedge funds and other institutional clients at FalconX have increased trading on the decentralized derivatives platform Hyperliquid as bitcoin and ether prices remain range-bound, according to Joshua Lim, head of markets at FalconX. 41% decline, CoinDesk reported.

Lim said FalconX expects major cryptocurrencies to stay in a narrow range over the next few months because of macroeconomic uncertainty, ETF outflows and competition from other speculative investments.

"What it is translating to is actually implied volatility, so the price of options is near all-time lows," Lim said. " Instead, traders have moved into assets tied to emerging themes such as artificial intelligence and decentralized trading infrastructure. "The altcoins are moving a lot," Lim said.

"That's where the speculative money is going. It's into things like HYPE and Zcash (ZEC) and Venice (VVV). " Hyperliquid launched its HYPE token in 2025 and generated about $800 million in revenue that year.

The platform has broadened its product lineup from crypto perpetual futures into tokenized stocks, commodities and prediction-style markets. "For things like HYPE, where there's broad consensus that it's an allocatable asset, there's a ton of liquidity. It's not hard to trade it," Lim said.

Lim said hedge funds are increasingly using Hyperliquid's derivatives products because they provide access to markets that are difficult or impossible to trade elsewhere. "They're very good at launching things early," he said, pointing to Hyperliquid's pre-IPO perpetual contracts tied to companies such as SpaceX. S.

Users. Grayscale has argued that the platform's long-term significance may lie less in the HYPE token itself and more in its potential to serve as a 24/7 trading venue for a wide range of financial assets.