JPMorgan: The de-risking phase for cryptocurrencies may have ended, and there are signs of stabilization in ETF fund flows

JPMorgan stated that the previous "de-risking" process in the crypto market may be nearing its end, with signs of stabilization in the fund flows of Bitcoin and Ethereum ETFs. The analysis team led by JPMorgan Managing Director Nikolaos Panigirtzoglou pointed out in a recent report that although BTC and ETH ETFs experienced outflows in December 2025, global stock ETFs recorded a historic monthly net inflow of $235 billion during the same period, several indicators began to improve as January 2026 approached.

The report noted that the fund flows of Bitcoin and Ethereum ETFs have shown "signs of bottoming," while the positions in perpetual contracts and CME Bitcoin futures indicate that selling pressure is easing. Analysts believe that the phase of retail and institutional investors simultaneously reducing positions during the fourth quarter of 2025 is likely over.

Additionally, JPMorgan pointed out that MSCI's decision not to exclude Bitcoin and crypto asset reserve companies from the global stock index in the February 2026 index review also provided the market with "at least a temporary relief," benefiting related companies including Strategy. The report also denied that the recent pullback in the crypto market was due to worsening liquidity. JPMorgan believes that the real trigger was MSCI's statement on October 10 regarding MicroStrategy's index status, which initiated a systemic de-risking operation, and current signs indicate that this process is essentially complete.