According to a report by CoinDesk, a team of analysts led by Nikolaos Panigirtzoglou from 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 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 ETF has attracted $16 billion in inflows since the beginning of the year, in addition to the funding activities related to 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, not all of these inflows represent new funds entering the market.
Many investors may have converted Bitcoin from exchanges’ cryptocurrency wallets to holding it in the form of Bitcoin ETFs due to cost efficiency, liquidity, and regulatory advantages, according to the analysts. The analysts cited data from CryptoQuant to support this claim, showing a decrease of 220,000 bitcoins (equivalent to $13 billion) in exchanges’ Bitcoin reserves since the ETF was launched in January. Based on this assumption, the net inflow of digital assets so far this year will decrease from $25 billion to $12 billion.
The report also noted that the $12 billion net inflow is higher than last year but significantly lower than during the bull market of 2021/2022. JPMorgan’s analysts stated in the report:
