- Institutional investors are expected to lead accelerated crypto inflows in 2026 after record 2025 levels.
- Regulatory clarity, particularly in the US, is seen as a key catalyst for broader institutional engagement.
- ETF flows and digital asset treasuries dominated 2025, while futures and early-stage VC activity lagged.
Institutional investors are expected to drive stronger crypto capital inflows in 2026 following a record year for the market in 2025, according to JPMorgan analysts. Total capital entering crypto markets reached nearly US$130 billion (AU$196.3 billion) last year, representing an increase of roughly one-third compared with 2024.
JPMorgan expects momentum to build further in 2026 as regulatory clarity improves, particularly in the United States. The analysts argue that additional legislation, including the proposed CLARITY Act, could remove barriers that have previously limited institutional participation.
They expect clearer rules to support expanded activity across exchange-traded funds, futures markets, venture capital funding, mergers and acquisitions, and initial public offerings.
Capital flow estimates were derived from ETF movements, CME futures signals, crypto venture fundraising, and purchases made by digital asset treasury companies.
In 2025, ETF inflows into Bitcoin and Ether were a major contributor and were likely driven primarily by retail investors. By contrast, buying implied through Bitcoin and Ethereum CME futures slowed significantly compared with 2024, indicating weaker hedge fund and institutional trading.
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Digital asset treasury purchases accounted for more than half of total inflows, contributing around US$68 billion (AU$102.68 billion) during the year. Strategy alone represented approximately US$23 billion (AU$34.73 billion) of those purchases, similar to its US$22 billion (AU$33.22 billion) Bitcoin buying in 2024.
Other treasury-focused firms acquired roughly US$45 billion (AU$67.95 billion) in digital assets, up sharply from US$8 billion (AU$12.08 billion) a year earlier.
Most treasury purchases occurred earlier in 2025, with activity slowing notably after October. Venture capital funding rose modestly but remained well below 2021 and 2022 levels, with fewer deals and reduced early-stage activity. JPMorgan expects easing de-risking conditions to support institution-led crypto inflows in 2026.
Related: Standard Chartered Sees Ether Poised to Outperform Bitcoin, Targets US$40K by 2030
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