Kraken has introduced a new token kHYPE, which will be used on the Hyperliquid platform. This token is created in a 1:1 ratio with the HYPE token and is stored in separate accounts, ensuring that there is no uncollateralized issuance. Each new issuance of kHYPE will be publicly verifiable, confirming that the tokens remain fully backed by assets. Users can return their assets between Kraken and Ink without any fees, which is expected to enhance liquidity in external markets; however, after redeeming kHYPE, it will not be possible to use it for earning additional rewards from Kraken staking.
One example of confidence in the project is a major investor with the nickname 0x8e48, who has additionally purchased 116,427 HYPE tokens for approximately 9.91 million dollars. Now, his portfolio holds 1.89 million HYPE worth about 159 million dollars at a price of around 84 dollars per token. All purchased tokens have been transferred to staking, which has reduced the available supply of tokens on the market. This supply limitation could lead to price increases in the event of rising demand, although one account is not capable of significantly impacting the market.
HYPE tokens are attracting interest not only from large investors—institutional investors have also started exiting ETF funds following the recent HYPE rally. The total assets of the ETF amount to 464.29 million dollars, with inflows of 338 million dollars. However, in recent days, there have been small capital outflows totaling 5.29 million dollars, which may signal that some investors are realizing their profits. Despite this, assets remain at historically high levels, which does not raise significant concerns.