JPMorgan: Crypto De-risking Phase May Be Over as ETF Flows Show Signs of Stabilization

On Jan. 9, JPMorgan said the crypto market’s prior “de-risking” process may be winding down, with Bitcoin and Ethereum ETF fund flows showing signs of stabilization. Led by Managing Director Nikolaos Panigirtzoglou, JPMorgan’s analysis team noted in a recent report that while BTC and ETH ETFs saw outflows in December 2025—when global stock ETFs posted a historic monthly net inflow of $235 billion—several indicators have begun improving as of January 2026. The report noted Bitcoin and Ethereum ETF fund flows have shown “signs of bottoming out,” while open interest metrics for perpetual contracts and CME Bitcoin futures indicate selling pressure is easing. Analysts say the phase of simultaneous position reductions by retail and institutional investors in Q4 2025 has likely concluded. Additionally, JPMorgan noted MSCI opted not to exclude Bitcoin and crypto asset reserve firms from global stock indices in its February 2026 index review—providing the market with “at least temporary relief” and benefiting related companies including Strategy. The report also pushed back on the idea that the crypto market’s recent pullback stemmed from deteriorating liquidity. JPMorgan says the real trigger was MSCI’s Oct. 10 statement on MicroStrategy’s index status, which sparked a systemic de-risking push—one that current signs suggest has largely wrapped up.