KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Crypto’s latest pullback is being driven primarily by retail investors cashing out of spot bitcoin and ether ETFs, according to JPMorgan analysts, who say the weakness is not linked to a wider shift away from risk assets.
In a note released Wednesday, the team led by Nikolaos Panigirtzoglou said retail investors have withdrawn roughly US$4 billion from spot Bitcoin and Ether ETFs so far in November. At the same time, they are pouring money into stock ETFs, which have seen US$96 billion in inflows month-to-date and may reach US$160 billion if the pace continues through month-end.
The divergence indicates the crypto downdraft is not part of a broad selloff, but rather a rotation driven by retail traders who view equities and crypto as separate exposures.
Bitcoin has now fallen below JPMorgan’s estimated production-cost support level of US$94,000, the analysts said. Unlike October’s sharp correction—triggered by crypto-native traders cutting leverage in perpetual futures—JPMorgan sees leverage stabilizing this month. Instead, November’s pressure is coming from non-crypto investors exiting spot ETFs.
Ether ETFs have seen their largest month-to-date outflows on record, surpassing February’s peak withdrawals, according to data cited from Coinglass.
JPMorgan noted that retail investors have shown this split behaviour before: heavy stock buying paired with crypto ETF selling occurred in February, March, and now November. While both equities and crypto are considered risk assets, retail flows suggest investors treat them differently, with crypto viewed as a higher-beta, more speculative bucket.
Despite this month’s ETF outflows, JPMorgan said the longer-term correlation between crypto and equities remains intact—particularly with small-cap tech stocks such as those in the Russell 2000 technology cohort, reflecting crypto’s link to early-stage innovation.
Bottom line:
November’s crypto retreat reflects retail ETF selling, not a shift to safety. Equity flows remain strong, and JPMorgan views the move as a normal unwinding of October’s speculative surge, without breaking the broader uptrend that has been in place since 2023.
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