Ramazan Eles 
JPMorgan analysts have expressed skepticism about the sustainability of strong crypto inflows so far this year, citing current high bitcoin prices.
Nikolaos Panigirtzoglou-led analysts raised their doubts due to the significantly higher current Bitcoin prices compared to both its production cost and gold.
The crypto market has seen significant inflows this year, largely driven by spot Bitcoin ETFs. However, analysts are questioning whether this pace will continue for the rest of the year.
Spot bitcoin ETFs have seen inflows of $16 billion year-to-date. Combined with the inflow momentum brought by CME futures and fundraising by crypto venture capital funds, total inflows into crypto have reached $25 billion year-to-date. However, analysts caution that this does not all represent new money entering the market.
Many investors may have shifted from crypto wallets on exchanges to spot Bitcoin ETFs due to cost efficiency, liquidity, and regulatory advantages. According to CryptoQuant data, this shift is clearly seen in the 220,000 BTC or $13 billion decrease in BTC reserves on exchanges since the launch of ETFs in January. After adjusting for this shift, the net inflow into crypto assets stands at about $12 billion year-to-date.
If the current trend continues, annual net inflows will be around $26 billion. However, analysts are skeptical about this.
“Given how high Bitcoin prices are relative to production cost or gold, we doubt the $12 billion year-to-date pace will continue for the rest of the year,