JPMorgan: Bitcoin ETF Price/Flow Correlation is Declining

JPMorgan analyst Ken Worthington stated in a report to clients that the correlation between the price of Bitcoin ETFs and their flow of assets is decreasing. On Wednesday, the correlation between the two asset classes dropped to 0.60, lower than the 0.78 recorded on February 7th and the 0.84 on January 31st. Worthington noted that a figure above 0.70 is considered "highly correlated," while a figure below 0.70 is considered "moderately correlated." Currently, it appears that fund flows are following price movements, as the significant increase in Bitcoin's price in early February led to a substantial influx of funds into ETFs. The recent price stability over the past few trading days may be a triggering factor for a slowdown in fund inflows.