Crypto capital flows differ from public‑market flows, creati...

Crypto capital flows differ from public‑market flows, creating distinct liquidity dynamics

Jeff observes that while stock markets are experiencing frothy rallies, crypto markets remain relatively flat.
This separation leads to divergent investor behavior: retail capital chases public‑market equities, while crypto traders stay within on‑chain products.
The divergence can cause mispricing between on‑chain assets and their fiat‑market equivalents.
Understanding these dynamics is crucial for builders launching new products on Hyperliquid.

Jeff PersUnchained01:03:45

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“the stock market is frothier and more retail driven than the crypto markets. That's the moment.” — Jeff Pers

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“Crypto markets just like another day, you know? It's like things are all slightly down today.” — Jeff Pers

The panel discusses on-chain "hype" vehicles that trade at premium to NAV, their similarity to GBTC, and the risks they pose for market stability.

“Retail orders are internalised and rarely hit the exchange, giving brokers and market‑makers the profit”

“Meme‑stock rallies gave retail traders a louder voice, but institutional participants still dominate price formation”

“Institutions value retail participation because it generates fee revenue (PFOF) and keeps markets liquid”