Retail dollars flowed out of bitcoin ETFs in April, and investors should adopt a cautious stance on the cryptocurrency for now, according to JPMorgan.
"The past two weeks saw significant selling/profit taking with perhaps retail investors playing a bigger role than institutional investors," JPMorgan's Nikolaos Panigirtzoglou said in a note Thursday.
"Indeed, not only have spot bitcoin ETFs seen outflows in April but our proxies of the retail impulse into equities have also downshifted over the past month."
Panigirtzoglou noted that in addition to crypto, retail investors also sold equities in April and that the impulse into stocks has also shifted down.
"This is shown by … the net flow into equity funds including ETFs and mutual funds, typically used by retail investors … [which] turned negative in April after strong buying in February and March," he said.
Persons:
JPMorgan's Nikolaos Panigirtzoglou, Panigirtzoglou, cryptocurrencies
Organizations:
JPMorgan, Metrics, Investors, Federal