Catenaa, Monday, January 12, 2026-Crypto market de-risking appears to be easing as exchange-traded fund flows and derivatives positioning show early signs of stabilization, according to a JPMorgan research note released Wednesday.
Analysts said bitcoin and ether ETFs faced sustained outflows in December, even as global equity ETFs recorded a record $235 billion in monthly inflows. The contrast highlighted investor caution toward digital assets late last year while risk appetite strengthened elsewhere.
Data from January, however, point to improving conditions. JPMorgan noted that bitcoin and ether ETF flows are beginning to bottom out. Positioning in perpetual futures and CME bitcoin futures also suggests selling pressure is fading, signaling reduced downside momentum.
The analysts said the pullback seen in the final quarter of 2025 was driven mainly by position reductions among both retail and institutional investors. Current indicators suggest that phase has largely run its course.
Additional support could come from MSCI’s recent decision to keep bitcoin and crypto treasury firms within its global equity benchmarks during its February 2026 index review. While MSCI plans a broader assessment of such companies, the move offers short-term relief for firms exposed to index inclusion risk.
JPMorgan also assessed whether tighter liquidity conditions fueled the recent correction and found little evidence to support that view. Measures of market breadth and price impact across CME bitcoin futures and bitcoin ETFs showed no material deterioration.
Instead, the analysts attributed the selloff primarily to de-risking linked to an October MSCI announcement related to MicroStrategy’s index treatment. With flows and positioning now stabilizing, JPMorgan said downside pressure appears to be easing.
