The Sustainability Debate: JPMorgan’s View on $12 Billion Crypto Inflows
JPMorgan analysts are questioning the sustainability of this year’s $12 billion inflow into crypto assets, citing high bitcoin prices compared to production costs and gold.
The inflows, mainly driven by spot bitcoin ETFs, represent a shift from crypto wallets to ETFs due to their cost-effectiveness, liquidity, and regulatory advantages. Adjusted for this shift, the net inflow is approximately $12 billion. While the trend suggests a potential annualized inflow of $26 billion, analysts remain skeptical, echoing their previous doubts about spot bitcoin ETF approvals attracting new capital to the crypto market.
Clever Robot News Desk 18th June 2024
