JPMorgan Report: Institutional Funds Will Drive Continued Growth in the Crypto Market by 2026

According to JPMorgan's latest analysis report, the cryptocurrency market is expected to see another wave of capital inflow by 2026, with the driving force shifting from retail investors to a broader range of institutional investors.

The report notes that the entire cryptocurrency market attracted nearly $130 billion in record-breaking capital inflows in 2025, representing an increase of about one-third compared to 2024.

The analysis attributes this growth primarily to capital inflows into spot BTC and ETH ETFs (likely driven by retail investors) and significant增持 by Digital Asset Treasury (DAT) corporations, two major forces driving the trend.

Notably, purchases by DAT companies other than Strategy surged from $8 billion in 2024 to approximately $45 billion in 2025, becoming the largest source of incremental capital last year. However, this corporate buying surge has significantly slowed since October of last year.

Nevertheless, analysts believe that as institutional investors become the new dominant force in the market, capital inflows into the cryptocurrency market are expected to increase further in 2026. This is mainly due to the potential passage of regulatory frameworks such as the U.S. Clarity Act, as well as a new wave of investment and M&A activities in cryptocurrency infrastructure, which will pave the way for traditional financial institutions to enter the market.

Analysts also observed that while total venture capital investment in cryptocurrencies saw a slight increase in 2025, the number of transactions declined and became more concentrated in later-stage projects, with some venture capital being diverted to DAT companies.

However, with current market sentiment and key indicators such as ETF fund flows showing preliminary signs of stabilization, it suggests that the retail and institutional sell-off trends in Q4 2025 may have already ended.

In summary, after a period of explosive growth driven by retail sentiment and specific corporate financial strategies, the cryptocurrency market is gradually transitioning into a new phase characterized by full institutional participation, clear regulatory support, and more sustainable development.

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