According to CoinDesk, a JPMorgan analyst team led by Nikolaos Panigirtzoglou said in a research report released on Wednesday that net inflows of digital assets have reached $12 billion so far this year. If funds continue to maintain the same pace, by That number could grow to $26 billion by the end of the year, but analysts at JPMorgan are skeptical whether the momentum will continue through the end of the year.
Analysts say Bitcoin spot ETFs have attracted $16 billion in inflows year-to-date, and combined with flows from CME futures and related financing activities in cryptocurrency venture capital funds, the year-to-date The total inflow of crypto assets to date has reached $25 billion. However, analysts note that not all of this represents new money entering the market.
Analysts said many investors may be switching from cryptocurrency wallets on exchanges to holding Bitcoin in the form of a Bitcoin ETF due to factors such as cost-effectiveness, liquidity and regulatory advantages. Analysts echoed this statement, citing data from CryptoQuant, which showed exchanges' Bitcoin reserves have fallen by 220,000 BTC (equivalent to $13 billion) since the ETF's launch in January. Based on this assumption, net flows into digital assets would decline from $25 billion to $12 billion so far this year.
The $12 billion in net inflows were higher than last year but significantly lower than the 2021/2022 bull run, the report added. Analysts at JPMorgan Chase said in the report:
“Given the high price of Bitcoin relative to its cost of production or relative to gold, we doubt the $12 billion pace so far this year can be sustained through the end of the year.”
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