JPMorgan: Crypto Market May Have Moved Past De-risking Phase as ETF Flows Stabilize

ETF Flows Signal Market Stabilization

A recent report from JPMorgan suggests that the crypto market's prior de-risking phase may be ending, with signs of stabilization emerging in Bitcoin and Ethereum ETF inflows. The firm's analysts note that although outflows occurred in December 2025, key indicators began showing improvement in early 2026.

Investor Sentiment Begins to Improve

In addition to ETF flow improvements, data from perpetual contracts and CME Bitcoin futures show decreasing selling pressure. Analysts believe that the synchronized selling from both institutional and retail investors has likely concluded, signaling a return of market confidence.

MSCI Review Brings Short-Term Relief

JPMorgan also highlighted MSCI's February decision not to remove crypto-related holdings from its global equity index, which has provided a temporary boost to market sentiment and offered breathing room for impacted firms.

Correction Driven by Index Change, Not Liquidity

The report clarifies that recent market weakness wasn't caused by deteriorating liquidity, but rather a systemic de-risking reaction to MSCI's October announcement regarding a major index component. Current indicators suggest this adjustment process has largely run its course.