JPMorgan, a leading financial institution, has issued a stark warning about the Bitcoin market. The bank claims that the demand for Bitcoin exchange-traded funds (ETFs) is significantly overestimated. This warning comes as the price of Bitcoin continues to plummet.

JPMorgan points out that not all the money flowing into these ETFs is new. Instead, it is largely a rotation of existing funds from digital wallets. This means that the majority of the $25 billion worth of ETF inflows since January are not fresh investments, but rather a shift from existing assets. In fact, the actual net flows into Bitcoin ETFs are estimated to be around $12 billion.

The bank also notes that Bitcoin's price is high compared to its production cost. This could lead to a slowdown in new investments in the coming months. The price of Bitcoin has been below $67,000, and ETFs saw significant outflows of $244 million on Thursday.

Some analysts have questioned JPMorgan's numbers, suggesting that the bank's estimates may be too high. James Seyffart, a prominent analyst, notes that it has long been known that some of the inflows are recycled Bitcoin. Eric Balchunas, Bloomberg's senior ETF analyst, believes that JPMorgan's anti-ETF stance will not age well, as any calls against the ETF are unlikely to be successful in the long run.