JPMorgan Sees Higher 2026 Crypto Inflows After Record $130 Billion in 2025

JPMorgan analysts predict that crypto inflows will continue to rise in 2026, driven primarily by institutional investors, following a record $130 billion in inflows in 2025. This increase is expected to be supported by regulatory progress, including the likely passage of the Clarity Act in the U.S.

The 2025 inflows were largely retail-driven, with a significant portion coming from Bitcoin and Ethereum ETFs. Meanwhile, institutional participation declined compared to 2024.

JPMorgan analysts led by Nikolaos Panigirtzoglou stated that institutional flows are expected to rebound in 2026, with further adoption of digital assets supported by clearer regulatory frameworks. This could also lead to increased institutional involvement in areas such as stablecoin issuers, payment firms, and blockchain infrastructure.

Why the Shift to Institutional Investors Matters

Institutional investors are seen as a stabilizing force in crypto markets. Their increased participation can bring more capital and reduce volatility compared to retail-driven activity.

The Clarity Act, if passed, is likely to provide a more defined legal framework for crypto firms in the U.S., encouraging institutional adoption. This includes clearer guidelines for crypto VC funding, M&A, and IPO activity in the sector.

What Drives 2025's Record Inflows

Digital asset treasury (DAT) purchases were a major component of the 2025 inflows. Around $68 billion of the total came from DATs, with $23 billion attributed to Strategy, a well-known DAT entity according to reports.

However, DAT activity slowed in the fourth quarter of 2025. Large holders such as Strategy and BitMine reduced their buying significantly during that period.

Crypto VC Funding and Market Trends

While crypto venture capital funding rose modestly in 2025 compared to 2024, deal counts dropped sharply. Activity became more concentrated in later-stage rounds, suggesting a shift in investor priorities.

Analysts noted that early-stage funding was crowded out by DATs, which redirected capital toward treasury strategies offering immediate liquidity. Several major crypto venture firms selectively led DAT funding rounds using liquid-side funds.

How Wall Street Is Adapting to Crypto

Morgan Stanley is expanding its crypto capabilities. The firm plans to launch a crypto wallet by the second half of 2026 and already enables BTC, ETH, and SOL trading on E-Trade.

JPMorgan is also evaluating crypto trading services for institutional clients, reflecting a broader trend among Wall Street firms to avoid being left behind.

What Signals Show Market Stability

JPMorgan analysts stated that the risk reduction phase in crypto markets likely ended in late 2025. ETF inflows and futures positioning data indicate that selling pressure is subsiding.

This shift is also supported by MSCI's decision not to exclude companies with Bitcoin treasury strategies from its global equity indices. This provides temporary relief for firms like Strategy.

The market appears to be searching for equilibrium, with a more stable period expected for 2026. Analysts noted that liquidity conditions did not worsen during the recent correction, and the market stabilized after MSCI's February 2026 index review.