Optimistic Thesis on Digital Assets' Return
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 02 2026
0mins
Should l Buy JPM?
Source: Fool
- Market Recovery Expectations: An optimistic narrative is circulating among investors that capital will soon rotate back into digital assets, particularly for beaten-down prices of Bitcoin and Ethereum, although analysts indicate that this 'Great Rotation' is not yet evident.
- Capital Inflow Data: JPMorgan estimates that digital asset inflows will total around $11 billion in Q1 2026, with demand primarily driven by corporate treasury purchases and venture deals rather than broad buying, suggesting a lack of trend formation in the market.
- Strong ETF Performance: U.S. spot Bitcoin ETFs absorbed $1.5 billion from April 14 to April 27, boosting total net inflows to $58.6 billion, although a short string of strong inflows does not indicate a long-term trend.
- Portfolio Strategy: Investors are advised to carefully craft their crypto portfolios ahead of time to benefit from any potential capital rotations while also gaining exposure to gradual asset value increases, particularly emphasizing the importance of Bitcoin and Ethereum among institutional buyers.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 302.100
Low
260.00
Averages
341.38
High
400.00
Current: 302.100
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Portfolio Structure Adjustment: Following this trade, Resolute Wealth's stake in JTEK dropped to 0%, whereas it previously accounted for 1.35% of AUM in the prior quarter, suggesting a reevaluation of the composition of the firm's investment portfolio.
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- Portfolio Structure Adjustment: Following this trade, Resolute Wealth's stake in JTEK dropped to 0%, whereas it previously accounted for 1.35% of AUM in the prior quarter, suggesting a reevaluation of the composition of the firm's investment portfolio.
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See More
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- Accelerated Inventory Depletion: According to TotalEnergies CEO Patrick Pouyanne, the global economy has consumed at least 500 million barrels from inventories this year, a figure that continues to rise, indicating severe challenges for the global oil market.
- Production Drop: Oil production in the Persian Gulf has plummeted by 57% since the onset of the war with Iran, with global inventories being drawn down at a rate of 10 to 13 million barrels per day, leading to tight market conditions and expectations of sustained high oil prices.
- Production Restart Challenges: Even if the Strait of Hormuz were to reopen today, it would take time to restore oil supplies from the Persian Gulf, with some wells potentially requiring up to seven months to restart, further exacerbating global inventory tightness.
- Optimistic Price Outlook: JPMorgan forecasts that Brent crude prices will remain in triple digits through the third quarter, with expectations of $80 per barrel next year, positioning oil producers to generate cash flows significantly above initial expectations, enhancing their financial flexibility.
See More
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- Credit Line Reduction: JPMorgan-led lenders cut FS KKR Capital's credit facility by approximately $648 million, or 14%, while raising borrowing costs, which will further strain the fund's financial stability.
- Deepening Losses: FS KKR reported around $560 million in losses for the first quarter, with non-accrual loans rising to 8.1%, indicating severe stress in its investment portfolio that could impact future financing capabilities.
- KKR Support Package: KKR announced a $300 million support plan for FS KKR, including $150 million in equity investment and $150 million for share buybacks, aimed at bolstering market confidence and stabilizing the fund's operations.
- Declining Asset Value: FS KKR's net asset value fell by about 10% in the first quarter, with the proportion of loans no longer generating income rising from 5.5% at year-end to 8.1%, reflecting increasing market concerns over asset quality.
See More
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- Holding Changes Overview: As of March 31, 2026, 42 hedge funds held JPMorgan Chase (JPM), with 12 increasing their positions and 22 decreasing them, indicating a divergence in market sentiment towards the stock.
- Share Count Growth: The total holdings of JPM by hedge funds reached 646,817,558 shares on March 31, 2026, up from 392,077,921 shares on December 31, 2025, reflecting an increase of 254,739,637 shares or approximately 64.97%, suggesting a bullish outlook on the stock.
- New and Exited Positions: In the latest 13F filings, Mark Sheptoff Financial Planning LLC exited its position in JPM common stock, while two new funds initiated positions, highlighting the dynamic nature of market participants.
- Investor Behavior Analysis: Although 13F filings only disclose long positions, analyzing the changes across multiple funds provides a more comprehensive understanding of market sentiment and potential investment opportunities, particularly in the ongoing interest in JPM.
See More
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- Market Performance Analysis: As of May 11, the financial sector is down 5% year-to-date, making it the second-worst performing industry, primarily dragged down by AI's impact on profits, constrained consumer borrowing capacity, and rising inflation expectations.
- Cboe Global Markets: CBOE reported a 29% year-over-year revenue increase and a 48% rise in EPS in Q1, with its 98% market share allowing for significant profit boosts during trading volume surges, indicating strong market demand and profitability.
- Interactive Brokers: IBKR's commission revenue grew 19% to $613 million in Q1, with client accounts up 31% to 4.75 million, demonstrating sustained profitability in volatile markets, and the active IPO pipeline is expected to further drive growth.
- Goldman's Market Position: Goldman Sachs derives 74% of its revenue from Global Banking & Markets, with a 71% stock price increase over the past year, and anticipated rebounds in IPO and sponsorship activities in 2026 could further enhance its banking and trading segments.
See More
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- KKR's Capital Injection: KKR announced a $300 million investment into the fund, with $150 million as equity and another $150 million to buy shares from investors wishing to exit, aimed at stabilizing the fund's financial situation through what it termed 'Strategic Value Enhancement Actions'.
- Declining Asset Value: FSK reported a loss of $2 per share in Q1, totaling around $560 million, with a net asset value decline of about 10%, reflecting an increase in non-performing assets, particularly from loans to software and dental service companies that have ceased interest payments.
- Rising Default Risk: The proportion of FSK loans that are no longer generating income rose to 8.1% by the end of Q1 from 5.5% at year-end, indicating a significant loss of market confidence in the fund's assets, while JPMorgan's reduction of the minimum equity floor suggests concerns over further asset depreciation.
See More
