According to a report by CoinDesk, a team of analysts led by Nikolaos Panigirtzoglou at J.P. Morgan 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, J.P. Morgan 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, 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 this represents new funds entering the market.
Many investors may have transferred Bitcoin from exchange cryptocurrency wallets to Bitcoin ETFs due to cost efficiency, liquidity, and regulatory advantages, according to the analysts. The analysts cited data from CryptoQuant to support this claim, noting that since the launch of ETFs in January, exchanges have reduced their Bitcoin reserves by 220,000 bitcoins (equivalent to $13 billion). 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 notes that this $12 billion net inflow is higher than last year but significantly lower than the bull market of 2021/2022. J.P. Morgan analysts stated in the report: