JP Morgan Predicts Massive $2.6 Trillion Inflow into Crypto Market by Year-End

JP Morgan Predicts Massive $2.6 Trillion Inflow into Crypto Market by Year-End

JP Morgan recently released a report predicting a substantial $2.6 trillion net inflow into the cryptocurrency market by the end of the year. This significant influx of funds would indicate a surge in investor interest and adoption of digital assets. According to CoinDesk, the report analyzes fund flows into the crypto market, which have already reached $12 billion this year. If this pace continues, the net inflow amount is expected to reach $26 billion (36 trillion won) by December 31st. A significant portion of this inflow, approximately $16 billion, has been attributed to Bitcoin (BTC) spot exchange-traded funds (ETFs). However, the report raises concerns about the sustainability of this inflow. It notes that a large portion of the funds invested in BTC spot ETFs appears to have originated from crypto exchange wallets. This suggests that the net inflow into the broader crypto market may be lower than initially estimated. After adjusting for the exchange wallet withdrawals, the report estimates that the annual net inflow into the crypto market could be closer to $12 billion. While this amount is still higher than last year's inflow, it falls short of the uptrend observed in 2021 and 2022. Additionally, the report expresses skepticism about whether this level of inflow can be sustained for the rest of the year, considering the increasing production costs faced by cryptocurrency miners.