Global ETFs Hold the Key to Cryptocurrency Market Trends - JPMorgan: End of the Selling Wave, Bottom Signals Have Emerged

The recent decline in the cryptocurrency market has entered its final stage. JPMorgan’s latest analysis indicates that multiple indicators, including global ETF capital flows and investor positioning, show that the market is approaching a bottom. For investors concerned about how to buy global ETFs, this signals an important market turning point is imminent.

Since the large-scale deleveraging at the end of last year, the market’s chip structure has undergone significant changes. JPMorgan analysts led by Nikolaos Panigirtzoglou emphasize that, based on several indicators from January 2026, not only are there signs of stabilization in perpetual contracts, but investor risk exposure in CME futures also reveals similar signals.

ETF Capital Outflows Halted - Bitcoin and Ethereum Inflows Confirmed

The market performance at the end of December 2025 was extreme. Global equity ETF inflows surged by $235 billion, setting a record; meanwhile, Bitcoin and Ethereum spot ETFs continued to experience fund redemptions. This contrasting phenomenon reflects that global investors significantly reduced their cryptocurrency exposure before year-end.

Bitcoin has corrected by double digits from its all-time high, with altcoins falling even more. This retracement, accompanied by rising volatility and ETF redemption waves, indicates a clear contraction in global risk appetite. However, after January 2026, a turning point emerged. Funds flowing into Bitcoin and Ethereum ETFs are beginning to stabilize, suggesting that the selling pressure among global ETF investors has greatly diminished. For investors tracking how to buy global ETFs, this is a clear signal: the most intense selling phase has passed.

Chip Positioning Completed - Perpetual and Futures Markets Show Deleveraging Wrap-up

From the perspective of derivatives, the signs of stabilization are even clearer. By observing changes in positions in perpetual contracts and CME futures, JPMorgan’s team found that both retail and institutional investors have largely completed their deleveraging actions that dominated the market in Q4 2025. When chip positioning is settled, it usually indicates that the market is building a bottom.

This means that the selling pressures from forced liquidations and stop-loss orders previously experienced have been significantly released. Investor position adjustments are nearing completion, creating conditions for a market rebound.

MSCI Key Decision - Putting the “Stop-Loss Pedal” for Passive Funds

The latest decision by index giant MSCI marks a crucial turning point in this bottoming process. MSCI has decided that in the Q2 2026 quarterly review, it will temporarily exclude companies like Strategy and Bitmine, which hold large amounts of cryptocurrencies, from its global equity benchmark indices.

This decision’s impact should not be underestimated. JPMorgan analysts note that it temporarily alleviates the “forced selling” pressure on passive funds and greatly reduces chain reaction selling caused by changes in index constituents. For global investors, this provides a buffer.

In response to market claims of “liquidity exhaustion,” JPMorgan refutes this. Indicators measuring CME Bitcoin futures and major ETF trading volumes show no obvious signs of deteriorating market liquidity. The real culprit behind the sell-offs stems from the panic deleveraging triggered by MSCI’s potential removal of “HODL stocks” in October 2025.

Bottom Confirmation - Multi-Dimensional Data Supports Market Bottoming

Based on a comprehensive analysis of ETF capital flows, chip positioning, derivatives markets, and MSCI policies, JPMorgan’s team concludes that most of the chip clearing has been completed. Data from January points to the market being in a “bottoming phase,” rather than the start of a new decline.

For investors focused on how to buy global ETFs, this analysis is highly significant. It suggests that the market’s bottom range has already formed, and the potential for subsequent rebounds is increasing. Of course, investment decisions should consider individual risk tolerance and investment horizon, but the confirmation of a market bottom provides clearer guidance for long-term investors.