According to a report by CoinDesk, a team of analysts led by Nikolaos Panigirtzoglou at JPMorgan released a research report on Wednesday, stating that the net inflow of digital assets has reached $12 billion so far this year. If funds continue to flow at the same pace, this number could grow to $26 billion by the end of the year. However, JPMorgan analysts are skeptical about whether this momentum will continue until the end of the year.
The analysts noted that Bitcoin spot ETFs have attracted $16 billion in inflows since the beginning of the year, combined with the inflows from Chicago Mercantile Exchange (CME) futures and cryptocurrency venture capital funds, the total inflow of crypto assets has reached $25 billion so far this year. However, the analysts pointed out that not all of these represent new capital entering the market.
Many investors may have transferred Bitcoin from exchanges’ cryptocurrency wallets to holding Bitcoin ETFs due to factors such as cost efficiency, liquidity, and regulatory advantages. The analysts referenced data from CryptoQuant to support this claim, noting that since the launch of ETFs in January, exchanges’ Bitcoin reserves have decreased by 220,000 Bitcoins (equivalent to $13 billion). Based on this assumption, the net inflow of digital assets so far this year is expected to decrease from $25 billion to $12 billion.
The report further notes that this $12 billion net inflow is higher than last year, but significantly lower than the bull market of 2021/2022. JPMorgan analysts stated in the report:
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