JPMorgan Projects Record Crypto Inflows in 2026 as Institutional Interest Grows

TLDR

• JPMorgan analysts project crypto inflows will increase in 2026 after reaching a record $130 billion in 2025, up roughly one-third from 2024.
• The 2025 inflows were driven mainly by bitcoin and ether ETF purchases and digital asset treasury company buying, while institutional activity through CME futures slowed.
• Digital asset treasury companies purchased around $68 billion in 2025, with Strategy buying $23 billion and other companies purchasing $45 billion.
• The expected 2026 growth will be led by institutional investors rather than retail, supported by new regulations like the U.S. Clarity Act.
• The Crypto Fear & Greed Index returned to “greed” territory at 61 for the first time since October’s $19 billion liquidation event.

Capital flows into cryptocurrency markets reached record levels in 2025 and are expected to climb higher this year, according to JPMorgan analysts. The banking giant’s research team estimates that crypto inflows hit nearly $130 billion in 2025, representing an increase of roughly one-third compared to 2024.

The analysts predict that 2026 will see continued growth in crypto investments. However, they expect the composition of buyers to shift toward institutional investors rather than retail participants or corporate treasury buyers.

JPMorgan’s managing director Nikolaos Panigirtzoglou and his team released their findings in a Wednesday report. They said the anticipated increase will likely be supported by new cryptocurrency regulations in the United States, particularly the passage of the Clarity Act.

The analysts believe additional regulatory clarity will encourage more institutional adoption of digital assets. This could also spark fresh activity in crypto venture capital funding, mergers and acquisitions, and initial public offerings across various sectors including stablecoin issuers, payment firms, exchanges, wallet providers, blockchain infrastructure, and custody solutions.

JPMorgan calculates total crypto inflows by combining several data sources. These include exchange-traded fund flows, the flow impulse from CME futures, crypto venture capital fundraising, and digital asset treasury purchases.

What Drove 2025’s Record Inflows

The 2025 increase was primarily fueled by investments in bitcoin and ether ETFs. The analysts said these flows appeared to be led mainly by retail investors. Digital asset treasury companies outside of Strategy also made large bitcoin purchases during the year.

In contrast, buying activity indicated by bitcoin and ethereum CME futures declined compared to 2024. This suggests weaker participation from institutional investors and hedge funds during 2025.

Digital asset treasury companies accounted for more than half of total inflows in 2025, purchasing approximately $68 billion worth of digital assets. Strategy bought around $23 billion in bitcoin, similar to its $22 billion in purchases during 2024. Other treasury companies purchased about $45 billion in digital assets in 2025, up sharply from just $8 billion the previous year.

However, most treasury company purchases occurred in the first part of 2025. Since October, crypto buying by these firms has slowed considerably, including purchases by large holders like Strategy and BitMine.

Crypto venture capital funding also contributed to overall capital flows in 2025. But VC funding remained well below the peaks seen in 2021 and 2022. While total crypto VC funding rose modestly compared to 2024, deal counts fell sharply and activity became more concentrated in later-stage rounds.

The analysts noted that early-stage funding slowed during the year. They said the limited growth in venture funding was surprising given the more favorable U.S. regulatory environment. The team suggested that crypto VC funding may have been crowded out by the rise of digital asset treasury strategies, as capital was redirected toward treasury purchases offering immediate liquidity rather than long-term venture investments.

Market Sentiment Shows Improvement

Market sentiment has begun to improve in recent weeks. The Crypto Fear & Greed Index registered a “greed” score of 61 on Thursday, marking the first time the index has shown greed since October. The metric had been in “fear” and “extreme fear” territory for weeks following a $19 billion liquidation event in October.

Bitcoin has rallied over the past week, climbing from $89,799 to reach a two-month high of $97,704 on Wednesday. The last time bitcoin traded above $97,000 was on November 14.

JPMorgan analysts said last week that crypto de-risking appears to be easing. They noted signs of stabilization across crypto ETF flows and other indicators, stating 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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