JPMorgan: Crypto "De-risking" Process May Have Ended, ETF Flows Show Signs of Stabilization

Odaily News JPMorgan stated that the previous "de-risking" process in the crypto market may be nearing its end, with Bitcoin and Ethereum ETF flows showing signs of stabilization.

An analysis team led by Nikolaos Panigirtzoglou, Managing Director at JPMorgan, pointed out in a latest report that although BTC and ETH ETFs experienced outflows in December 2025, global equity ETFs recorded a historic monthly net inflow of $235 billion during the same period. However, entering January 2026, several indicators began to improve.

The report stated that Bitcoin and Ethereum ETF flows have shown "signs of bottoming out," while indicators for perpetual contracts and CME Bitcoin futures positions suggest that selling pressure is easing. Analysts believe that the phase of simultaneous position reduction by retail and institutional investors during the fourth quarter of 2025 has most likely ended.

Furthermore, JPMorgan noted that MSCI's decision in its February 2026 index review to temporarily not remove Bitcoin and crypto asset reserve companies from the global equity indices has provided the market with "at least temporary relief," benefiting related companies including MicroStrategy.

The report also denied that the recent crypto market correction was caused by deteriorating liquidity. JPMorgan believes the real trigger was MSCI's statement on October 10 regarding MicroStrategy's index status, which sparked systematic de-risking operations. Current signs indicate that this process has largely been completed.