JPMorgan Says $50 Billion Has Flowed Into Crypto This Year, Sees Stronger Q4 Momentum

JPMorgan estimates that about $50 billion has flowed into the cryptocurrency market this year, with third-quarter inflows into exchange-traded funds and rising futures positions helping build positive momentum for fourth-quarter flows.

Crypto-focused media outlet The Block reported on October 8 that a JPMorgan research team led by analyst Nikolaos Panigirtzoglou said in a report that inflows into the crypto market have reached about $50 billion this year.

On an annualized basis, that would amount to about $66 billion, up from a $52 billion estimate in May. Even so, it is about half of last year's annualized inflows.

JPMorgan said corporate crypto purchases and venture capital fundraising were the main drivers in the first half of the year. In the third quarter, ETF inflows and an increase in futures positions stood out.

The bank added that participation by retail and institutional investors has expanded, supporting positive momentum for fourth-quarter flows.

JPMorgan estimates total market inflows by combining flows into crypto funds, flows in the Chicago Mercantile Exchange futures market, crypto venture capital fundraising, and digital-asset purchases by listed mining companies and corporations.