Encouraging Comment from JPMorgan for Cryptocurrencies: It Can Double!

According to the analysis of banking giant JPMorgan, there may be twice as much investment in cryptocurrency markets.

Cryptocurrency markets have seen a net inflow of $12 billion since the beginning of the year. If this pace continues, this number could rise to $26 billion by the end of the year, according to JPMorgan research.

It's not all new capital

The main investment vehicle that brought money into the cryptocurrency market this year was spot Bitcoin ETFs with $16 billion.

When futures contracts made on the Chicago Commodity Exchange (CME) and capital collected by cryptocurrency funds are included, a total of 25 billion dollars have entered cryptocurrencies since the beginning of the year.

However, not all of this money is considered to have just entered the market. “We believe there is a significant shift from exchange-held wallets to new spot Bitcoin ETFs,” JPMorgan analysts said.

Stock market confirms data

The balance of wallets belonging to cryptocurrency exchanges justifies JPMorgan's comment. According to JPMorgan, the amount of Bitcoin held on exchanges began to decline after spot ETFs began trading in January.

“This implies that much of the $16 billion that flowed into spot Bitcoin ETFs after they entered the market went through wallets that were already on the exchanges,” JPMorgan said. For this reason, it is assumed that 12 billion dollars, not 25 billion dollars, have entered the cryptocurrency industry since the beginning of the year.

This number remains below the numbers recorded during the bull market period of 2021/2022.