The recent crypto market crash, one of the largest liquidation events in history, was primarily driven by crypto native traders, not institutional or retail ETF investors, according to a new report from JPMorgan.
Analysts led by Nikolaos Panigirtzoglou said there was “little evidence” of significant liquidations in spot Bitcoin exchange-traded funds, which are mostly used by traditional retail investors. According to information from The Block, between October 10 and 14, Bitcoin ETFs recorded only $220 million in outflows, representing 0.14% of total assets under management. Ethereum ETFs saw a slightly larger pullback of $370 million, or 1.23% of AUM, but still below levels typical of a full-scale institutional unwind.
In derivatives markets, the data revealed a similar pattern. CME Bitcoin futures, a preferred vehicle for institutional traders, showed minimal liquidations, while CME Ethereum futures experienced some deleveraging, likely due to momentum-based funds like commodity trading advisors (CTAs) and quant strategies reducing risk exposure.
The sharpest moves came from perpetual futures, a product heavily used by crypto-native participants. JPMorgan noted that open interest in Bitcoin and Ethereum perpetual contracts plunged roughly 40%, a decline that far outpaced the price drops of either asset.
This steep contraction, the bank said, confirms that the sell-off was driven by overleveraged crypto-native traders rather than traditional investors.
The correction, which erased over $20 billion in leveraged positions, followed escalating tariff headlines from President Donald Trump, sparking widespread risk-off behavior across digital assets. While Bitcoin has since stabilized near $108,500, JPMorgan’s analysis suggests that the recent deleveraging reflects internal market fragility within the crypto-native trading community, not a broader exodus from institutional capital.