Capital inflows into the crypto market are expected to continue expanding in 2026, driven primarily by institutional investors, following a record inflow of nearly $130 billion in 2025, according to a new analysis by JPMorgan. The figure represents an increase of roughly one-third compared to 2024, underscoring the growing role of digital assets within global financial markets.
In a report released on Wednesday, JPMorgan analysts led by Managing Director Nikolaos Panigirtzoglou noted that a recovery in institutional participation next year is likely to be supported by the adoption of clearer regulatory frameworks, including proposed U.S. legislation such as the Clarity Act. These developments are expected to facilitate broader institutional adoption and reignite activity across crypto venture capital, mergers and acquisitions, and initial public offerings—particularly in areas such as stablecoin issuance, payments, exchanges, wallets, blockchain infrastructure, and custody services.
JPMorgan estimates total crypto inflows by aggregating data from Bitcoin and Ether ETFs, implied flows from CME futures markets, crypto-focused venture capital fundraising, and digital asset purchases by companies pursuing Digital Asset Treasury (DAT) strategies.
Data from 2025 shows that much of the inflow growth was driven by Bitcoin and Ether ETFs, which JPMorgan believes were largely led by retail demand, alongside Bitcoin purchases by DAT firms outside of Strategy. In contrast, implied buying from Bitcoin and Ethereum CME futures slowed significantly compared to 2024, reflecting weaker participation from institutional investors and hedge funds.
More than half of total crypto inflows in 2025—approximately $68 billion—came from DAT strategies. Strategy alone accounted for around $23 billion, roughly matching its 2024 Bitcoin purchases. Other DAT firms acquired roughly $45 billion in digital assets, a sharp increase from just $8 billion the year before. However, most of this activity was concentrated in the first half of the year, with purchases slowing markedly after October, including among major holders such as Strategy and BitMine.
Crypto venture capital also contributed to inflows, though activity remained well below the 2021–2022 peak. While total VC investment increased modestly year-over-year in 2025, deal count declined sharply, with capital increasingly concentrated in later-stage rounds. Early-stage funding weakened significantly throughout the year.
JPMorgan highlighted this muted VC recovery as notable, particularly given the improving regulatory backdrop in the U.S. The bank suggested that some VC capital has been crowded out by the rise of DAT strategies, as funds previously allocated to early-stage startups shifted toward more liquid treasury-based approaches. Several large crypto VC firms have also directly participated in DAT fundraising using liquid capital.
Looking ahead, JPMorgan expects crypto inflows to continue rising in 2026, with institutional investors playing a more dominant role, rather than retail participants or DATs. The analysts added that the broader crypto “de-risking” phase appears to be easing, with stabilization observed in ETF flows and other indicators, suggesting that the position reductions seen in Q4 2025 have likely concluded.
This article is for informational purposes only and reflects personal analysis. It does not constitute investment advice. Readers should conduct their own research before making any financial decisions. The author is not responsible for any investment outcomes.
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