Wall Street banking giant JPMorgan has released a bullish forecast for the cryptocurrency market, predicting that capital inflows will continue and potentially accelerate in 2026. This projection follows a record-breaking year in 2025, during which approximately $130 billion flowed into digital assets, marking a roughly one-third increase from 2024.
The bank's analysts, led by Managing Director of Global Market Strategy Nikolaos Panigirtzoglou, attribute the expected surge to growing institutional participation. They argue that this trend underscores a fundamental shift in perception, with digital assets gaining recognition as a legitimate investment class. The analysts anticipate that institutional investment activities will be primarily driven by new regulatory frameworks, such as the Clarity Act in the United States, which provide the legal clarity large investors require.
JPMorgan's methodology for calculating capital flows considered several key factors: inflows into exchange-traded funds (ETFs), trends in CME futures, crypto venture capital funding, and purchases by digital asset treasury (DAT) firms. The report noted that the 2025 surge was largely fueled by inflows into Bitcoin and Ether ETFs, which were likely driven by retail investors. Simultaneously, DAT firms made significant, off-strategy investments in Bitcoin.
However, the report highlighted a contrasting trend: purchasing activity related to Bitcoin and Ethereum CME futures declined drastically in 2025 compared to the previous year, indicating reduced engagement from institutional investors and hedge funds in that specific derivative market. A standout data point reveals that over 50% of the 2025 inflows, approximately $68 billion, originated from Digital Asset Trusts. Strategy Inc. alone contributed around $23 billion, a figure comparable to the total $22 billion allocated for Bitcoin purchases in 2024. Other DATs purchased approximately $45 billion in digital assets last year, a sharp rise from $8 billion in 2024.
While institutional and ETF flows were strong, crypto venture capital funding showed sluggish growth. Although total funding saw a minor year-over-year increase, the number of deals struck decreased drastically, with a noted shift in focus toward later-stage funding rounds and a sharp drop in early-stage initiative funding. Analysts expressed surprise at this tepid growth, given the improving regulatory environment.
JPMorgan's overarching conclusion is that the market is entering a new, more mature phase. Capital is increasingly flowing through structured, regulated products, reducing market chaos and bringing stability. The bank asserts that crypto is no longer a speculative side experiment but is becoming a permanent fixture in global finance, discussed alongside traditional assets like stocks and bonds.
