JPMorgan expects crypto inflows to rise further in 2026 after record $130 billion in 2025

Capital inflows into crypto markets are expected to rise further in 2026, led more by institutional investors, after hitting a record inflow of nearly $130 billion in 2025, up roughly a third from 2024, according to JPMorgan analysts.

“The rebound in institutional flows we project for 2026 is likely to be facilitated by the passage of additional crypto regulations such as the Clarity Act in the U.S. which is likely to trigger further institutional adoption of digital assets as well as fresh institutional activity around crypto VC funding, M&A and IPOs in sectors such as stablecoin issuers, payment firms, exchanges, wallet providers, blockchain infrastructure, and custody solutions,” the JPMorgan analysts, led by managing director Nikolaos Panigirtzoglou, said in a Wednesday report.

The analysts estimate overall capital flows into crypto by aggregating exchange-traded fund flows, the flow impulse implied by CME futures, crypto venture capital fundraising, and digital asset treasury, or DAT, purchases.

Crypto inflows in 2025

The increase in 2025 was driven primarily by inflows into bitcoin and ether ETFs, which the analysts said were likely retail-led, as well as bitcoin purchases by DAT companies outside of Strategy. In contrast, buying implied by bitcoin and ethereum CME futures slowed significantly compared with 2024, suggesting weaker participation from institutional investors and hedge funds, the analysts noted.

More than half of total digital asset inflows in 2025 — around $68 billion — came from DATs, according to the analysts. Strategy accounted for roughly $23 billion of those purchases, similar to its $22 billion in bitcoin buying in 2024, they said. Other DATs purchased about $45 billion worth of digital assets in 2025, up sharply from just $8 billion the year before, the analysts added.

However, most of those DAT purchases occurred earlier in the year. Since October, crypto buying by DATs has slowed considerably, including purchases by large holders such as Strategy and BitMine, the analysts said.

Crypto venture capital funding was another contributor to overall capital flows, though it remained well below the peaks seen in 2021 and 2022. While total crypto VC funding rose modestly in 2025 compared with 2024, deal counts declined sharply, and activity became more concentrated in later-stage rounds. Early-stage funding slowed materially during the year.

The analysts said the muted growth in venture funding was notable given a more favorable U.S. regulatory backdrop. They added that crypto VC funding was at least partly crowded out by the rise of DATs, as capital previously reserved for early-stage startups was redirected toward treasury strategies offering immediate liquidity rather than long-dated venture exposure. Several major crypto venture firms, they noted, selectively led DAT funding rounds using liquid-side funds.

Looking ahead, the analysts expect crypto inflows to increase further in 2026, but to be driven more by institutional investors rather than retail investors or DATs.

Last week, the analysts said crypto de-risking appears to be easing, with signs of stabilization emerging across crypto ETF flows and other indicators. They added that “the previous crypto position reduction by both retail and institutional investors during the last quarter of 2025 is likely behind us.”

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