JPMorgan Analysts’ ETF Report: ‘The Risk Mitigation Process May Be Over!’ Here Are the Details

JPMorgan announced that the “risk reduction” process that has affected cryptocurrency markets in recent months may have largely ended, and signals of stability in ETF flows are strengthening. The bank’s analysts noted that data, particularly for Bitcoin and Ethereum spot ETFs, indicates that selling pressure has weakened.

According to a report published by an analyst team led by managing director Nikolaos Panigirtzoglou at JPMorgan, while Bitcoin and Ethereum ETFs experienced outflows in December, global equity ETFs recorded record monthly inflows totaling $235 billion.

However, the picture in the crypto markets began to change in January. Analysts stated that Bitcoin and Ethereum ETF flows were entering a “bottoming” phase, and that positioning in perpetual futures and CME Bitcoin futures contracts indicated a decrease in selling pressure.

The report notes that while both individual and institutional investors significantly reduced their positions in crypto assets in the last quarter of 2025, current indicators suggest this process is now behind us.

According to JPMorgan, this stability may also be supported by MSCI’s decision not to exclude companies pursuing Bitcoin and crypto treasury strategies from its global equity indices in its February 2026 index review. Analysts noted that this decision provides “at least temporary relief” for companies like Strategy.

On the other hand, JPMorgan argued that the recent crypto correction was not caused by worsening liquidity conditions. According to the bank, the main trigger was the accelerated risk reduction process following MSCI’s announcement on October 10th regarding the delisting of MicroStrategy from its indices. Analysts assessed that the January data indicated a strengthening search for equilibrium in the market and that a more stable period may be beginning for crypto markets.

*This is not investment advice.