According to a report from JPMorgan analysts led by Managing Director Nikolaos Panigirtzoglou, overall digital asset flows dropped sharply to approximately $11 billion in the first quarter of 2026. This figure represents about one-third of the level seen in the same period last year and implies an annualized pace of around $44 billion, which is significantly lower than the record $130 billion in inflows observed in 2025.
The analysts' estimate of total digital asset flows combines several sources: crypto fund flows, CME futures activity, crypto venture capital (VC) funding, and corporate treasury purchases, including bitcoin buying by Michael Saylor’s company, MicroStrategy. In Q1 2026, most inflows were attributed to corporate treasury bitcoin purchases, primarily by MicroStrategy, and to crypto VC funding, rather than from retail or institutional investors.
Institutional demand through CME futures weakened in Q1 compared to 2024 and 2025, suggesting a negative turn so far this year. Additionally, spot bitcoin and Ethereum ETFs experienced net outflows during the quarter, mostly in January, although bitcoin ETFs saw some inflows in March.
The report highlighted that corporate treasury buys were a main driver but were more uneven than in the previous year. A small group of buyers, including MicroStrategy, continued to accumulate bitcoin, while some smaller companies sold holdings to fund buybacks. "In Q1’26 [MicroStrategy’s] bitcoin purchases were funded primarily through equity issuance," the analysts wrote. They added that the company intends to keep using a mix of common stock and perpetual preferred stock to support ongoing bitcoin accumulation, while other corporate treasuries maintain a defensive stance.
Meanwhile, bitcoin miners became net sellers in Q1. Some listed mining firms sold bitcoin or used it as collateral to improve liquidity, fund capital expenditure, or manage liabilities. In some cases, these moves were linked to a strategic shift toward artificial intelligence. The analysts noted that overall selling by miners was mainly due to tighter financing conditions and financial discipline, "rather than broad-based distress liquidation."
Crypto VC funding remained strong in Q1, tracking an annualized pace higher than the previous two years. However, the deal count and investor participation declined, with funding becoming more concentrated in fewer, larger rounds led by established firms.
The analysts concluded: "In all, our estimate of the overall digital asset flow slowed considerably in the first quarter of the year tracking an annualised pace that is close to a third of that seen last year. Moreover, investor flows, either retail or institutional, have been small or even negative YTD with the bulk of the digital asset flow in Q1’26 stemming from [MicroStrategy’s] bitcoin purchases and concentrated crypto VC funding."
