Bitcoin ETF Price/Flow Correlation is Declining: JPMorgan

The
price
of
bitcoin

(BTC)
has
not
been
moving
as
closely
in
relation
to
flows
in
and
out
of
the
spot
ETFs
as
it
previously
did,
according
to
JPMorgan.

On
Wednesday,
the
correlation
between
the
two
asset
classes
dropped
to
0.60,
said
analyst
Ken
Worthington
in
a
note
Thursday
morning
to
the
bank’s
clients.
That’s
down
from
0.78
on
Feb
7.,
said
Worthington,
and
from
as
high
as
0.84
on
Jan.
31.

Worthington
said
a
number
above
0.70
is
considered
“highly
correlated,”
and
just
below
would
be
“moderately
correlated.”

Inflows
accelerated
last
week
when
investors
poured
a
record
$2.4
billion
into
the
funds,
the
largest
amount
in
their
short
history.
The
inflows
continue
to
be
dominated
by
BlackRock’s
IBIT
and
Fidelity’s
FBTC,
which
to
this
point
have
garnered
nearly
$11
billion
in
AUM.

For
now,
it
appears
that
flows
are
following
price,
with
bitcoin’s
sharp
gains
in
early
February
leading
to
a
jump
in
money
going
into
the
ETFs.
The
leveling
in
price
of
the
last
few
sessions
has
may
have
been
the
trigger
for
softer
inflows
into
the
funds.