While most investors have been focused on spot Bitcoin and Ethereum exchange-traded funds, altcoin ETFs have continued to fly under most people's radar. Solana and Hyperliquid ETFs have combined to account for nearly 80% of non-BTC and ETH ETF volume, with Hyperliquid ETFs having launched only two months ago. 

Solana (SOL) ETFs boast an impressive $904 million AUM, while the Hyperliquid (HYPE) suite has managed to attract $350 million in net inflows. Both figures represent approximately 2% of each token's market cap.

Bitcoin, by comparison, has nearly 9% of its market cap held in ETF products. The gap suggests that altcoin ETFs may benefit further as they gain investor acceptance.

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Alternatively, this could be reflected in Bitcoin's nearly two-year head start rather than a ceiling that alts are guaranteed to close.

These flows are likely skewed by investor type. SOL and HYPE sit further out on the risk curve with less regulatory precedent and higher volatility, so they're attracting allocators with higher risk tolerance. Bitcoin and Ethereum, however, benefit from the anchoring of investors who tend to be stickier and more passive. 

As projects such as Hyperliquid and Solana continue to engage with regulatory bodies and build out RWA rails, this may open the door to investors interested in that exposure.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.