JPMorgan: Recent market pullbacks may be driven by native Crypto Assets investors.

PANews reported on October 17 that JPMorgan analysts stated that last week's significant pullback in the crypto market, accompanied by large-scale Close Positions, was driven by native cryptocurrency investors rather than institutional or retail investor ETF holders. The report showed that the Spot Bitcoin ETF, favored by traditional retail investors, showed “almost no signs of large-scale Close Positions.” From October 10 to 14, the Bitcoin ETF had a cumulative net outflow of $220 million, accounting for only 0.14% of total assets under management; the Ethereum ETF had a net outflow of $370 million, accounting for 1.23%. At the same time, CME Bitcoin futures saw almost no Close Positions, while CME Ethereum futures experienced significant deleveraging, possibly reflecting momentum traders “substantially lowering their risk exposure.” In contrast, the perpetual futures favored by native cryptocurrency traders saw significant deleveraging, with the unclosed amounts for Bitcoin and Ethereum perpetual contracts dropping by about 40%, which exceeded the price declines of these two assets. Analysts believe that native cryptocurrency investors were the main driving force behind last week's market pullback, while non-native cryptocurrency investors mostly remained on the sidelines.