JPMorgan: ETF fund outflows slow down, crypto market sell-off may be nearing the bottom

JPMorgan's latest report indicates that the recent sell-off in the cryptocurrency market may be nearing its end. Analyst Nikolaos Panigirtzoglou stated that the outflows from Bitcoin and Ethereum ETFs began to stabilize in January, and the futures market positioning indicators show that the reduction in investor positions by the end of 2025 has largely been completed.

The bank believes that market liquidity remains good, and this round of adjustment was primarily caused by the de-risking triggered by MSCI's statement last October regarding the potential exclusion of crypto-related companies, rather than market pressure. MSCI recently decided not to exclude cryptocurrency-related companies in the global index review scheduled for February 2026, which provides short-term relief to the market and reduces the risk of forced selling associated with index fluctuations.