From 24/7 Wall St. · Sam Daodu · · 1m 30s
Multicoin Capital Names Hyperliquid Largest Hedge Fund Holding
Multicoin Capital's $2.7B hedge fund now holds Hyperliquid tokens, but price dropped 14% monthly.
In brief
Multicoin Capital's $2.7B hedge fund now holds Hyperliquid tokens, but price dropped 14% monthly. Multicoin Capital's largest hedge fund holding in Hyperliquid (HYPE) has not boosted the token's price after a 14% monthly drop. Originally reported by 24/7 Wall St..
Quick answers
- Is HYPE a Buy After Drop?
- HYPE's 13.5% monthly drop suggests robust exchange data hasn't maintained price despite rising open interest.
- What is the key takeaway from Multicoin Capital Names Hyperliquid Largest Hedge Fund Holding?
- Multicoin Capital's largest hedge fund holding in Hyperliquid (HYPE) has not boosted the token's price after a 14% monthly drop.
Multicoin Capital Names Hyperliquid Largest Holding
Multicoin Capital, a cryptocurrency investment firm managing $2.7 billion, named Hyperliquid its largest hedge fund holding on October 19, 2.026.
“Multicoin Capital, a cryptocurrency investment firm managing $2.7 billion, has named Hyperliquid (CRYPTO: HYPE) its largest hedge fund holding”
HYPE Price Drops 14% Monthly
HYPE trades at $78, down 13.5% over the past month and 20% below its $98 peak on September 23.
“As of October 20, the token trades at about $78, down 4% over the past week and 13.5% over the past month”
Hyperliquid's Revenue Model
Hyperliquid generates revenue through trading fees, channeling most into automated HYPE purchases via its Assistance Fund.
“Hyperliquid makes money through trading fees, and its Assistance Fund channels most of these fees into automated purchases of HYPE on the open market.”
Open Interest Doubles in Q3
Hyperliquid's open interest nearly doubled to $12.2 billion in Q3, approaching CME Group's $13.4 billion.
“Martin Gaspar, senior crypto market strategist at prime broker FalconX, noted that Hyperliquid’s open interest, representing the total value of active futures contracts, nearly doubled in the third quarter, reaching $12.2 billion.”
SEC Legal Concerns for Hyperliquid
Hyperliquid Policy Center submitted a comment letter to SEC on October 19, seeking clarity on airdrops, token buybacks, and secondary trading.
“The Hyperliquid Policy Center, which advocates for the exchange, submitted a comment letter to the SEC on October 19, asking for clarification on rules regarding airdrops, token buybacks, and secondary trading.”
U.S. Competition Intensifies
CFTC approved crypto perpetual futures for U.S. exchanges, while CME filed a lawsuit challenging the approval.
“The CFTC has approved crypto perpetual futures for regulated U.S. exchanges, starting with a Bitcoin perpetual contract, while CME has filed a lawsuit challenging that approval.”
Multicoin's Claim Doesn't Guarantee Trading
Multicoin did not disclose position size, entry price, holding duration, or lockup terms for HYPE.
“Multicoin’s announcement does not commit the firm to any specific actions; it did not disclose details such as position size, entry price, holding duration, or lockup terms”
Supply Pressure on HYPE
Only 222.4 million HYPE tokens (22% of 1 billion max supply) are in circulation, creating future selling pressure.
“Currently, only 222.4 million HYPE tokens, about 22% of the 1 billion maximum supply, are in circulation, so future releases could increase selling pressure that buybacks need to manage.”
Is HYPE a Buy After Drop?
HYPE's 13.5% monthly drop suggests robust exchange data hasn't maintained price despite rising open interest.
“HYPE’s 13.5% decline over the past month, despite rising open interest, suggests that robust exchange data hasn’t been able to maintain its price.”
The main idea
Multicoin Capital's largest hedge fund holding in Hyperliquid (HYPE) has not boosted the token's price after a 14% monthly drop.
