TLDR
- JPMorgan predicts a significant rise in crypto inflows in 2026 after a record $130 billion in 2025.
- Institutional investors are expected to drive the growth of crypto inflows in 2026.
- The passage of regulations such as the Clarity Act is expected to boost institutional adoption of digital assets.
- More than half of the 2025 crypto inflows came from digital asset treasury purchases.
- Crypto venture capital funding showed modest growth in 2025 but remained below the levels seen in 2021 and 2022.
JPMorgan analysts predict that crypto inflows will continue to grow in 2026, following a record inflow of $130 billion in 2025. This increase is expected to be driven mainly by institutional investors, supported by favorable regulatory changes. The surge in 2025 was a result of both retail and institutional participation, with institutional flows expected to take the lead in 2026.
Institutional Investors to Lead Crypto Inflows in 2026
According to JPMorgan analysts, 2026 will see further growth in crypto inflows, primarily from institutional investors. They believe that the passage of regulations such as the Clarity Act in the U.S. will trigger increased institutional interest in digital assets. “The rebound in institutional flows we project for 2026 is likely to be facilitated by the passage of additional crypto regulations,” said Nikolaos Panigirtzoglou, managing director at JPMorgan.
Institutional investors are expected to engage more actively in areas like crypto venture capital funding, mergers, acquisitions, and initial public offerings. These activities will likely focus on sectors such as stablecoin issuers, payment firms, exchanges, wallet providers, blockchain infrastructure, and custody solutions. The analysts predict that these developments will drive a new wave of institutional participation in the crypto market.
Strong Growth in Digital Asset Treasury Purchases in 2025
JPMorgan analysts also observed a sharp increase in digital asset treasury (DAT) purchases, which played a crucial role in the record inflows of 2025. DATs accounted for over half of the total crypto inflows in 2025, contributing approximately $68 billion. These purchases were driven by companies focused on digital asset treasury strategies, which seek immediate liquidity rather than long-term venture capital exposure.
While the growth of crypto venture capital funding was more subdued in 2025 compared to previous years, DAT investments continued to rise. The analysts noted that several major crypto firms led DAT funding rounds using liquid-side funds. This trend suggests that institutional investors are more inclined to prioritize liquidity in the current environment, which has impacted the traditional venture capital landscape.
Crypto Venture Capital Funding Remains Below Peak Levels
In contrast to the surge in DAT investments, crypto venture capital funding remained below its peak levels of 2021 and 2022. Although funding grew slightly in 2025 compared to 2024, the number of deals declined significantly. Deal activity has become more concentrated in later-stage rounds, with early-stage investments slowing down during the year.
The analysts attribute the shift in funding strategies to the increasing dominance of DAT investments. With more capital being directed towards treasury strategies, crypto venture capital has faced challenges in attracting early-stage investments. Despite this, the analysts remain optimistic about the continued growth of institutional participation in the crypto space.
JPMorgan’s forecast for 2026 indicates that crypto inflows will be primarily driven by institutional investors, who will benefit from improved regulatory clarity and opportunities in various crypto sectors. The analysts remain confident that institutional capital will continue to flow into the market, supporting the ongoing expansion of the digital asset ecosystem.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
