According to the source, JPMorgan analysts say the ongoing crypto correction has been driven primarily by retail investors selling Bitcoin (BTC) and Ethereum (ETH) ETF shares. Equity ETFs are still recording large inflows while crypto ETFs see outflows, according to JPMorgan analysts.

According to The Kobeissi Letter, retail investors have purchased stocks at a record-breaking rate in 2025, with equity ETF net inflows reaching approximately $122 billion year-to-date. Goldman Sachs data reveals that since mid-March, individual investor inflows have doubled even as equity markets experienced a sell-off. This surge in retail participation signals heightened risk appetite and liquidity, potentially influencing correlated assets such as cryptocurrencies, which often respond to shifts in traditional equity flows (source: The Kobeissi Letter, May 19, 2025; Goldman Sachs). Crypto traders should monitor retail flows as a leading indicator for cross-asset sentiment and volatility.