JPMorgan: This year's crypto "capital frenzy" surpasses last year, with the next wave of main players switching to "institutions"

JPMorgan Chase analysts point out that after nearly $130 billion flowed into the cryptocurrency market in 2025, reaching a record high, there is still room for further growth in 2026. However, the main drivers of this surge will shift from retail investors and corporations to “institutional investors” taking the lead.

Led by Managing Director Nikolaos Panigirtzoglou, the JPMorgan analysis team stated in a report on Wednesday that the capital inflow in 2025 increased by about one-third compared to the previous year. Looking ahead to 2026, as the regulatory environment becomes clearer, institutional buying is expected to return to the market, becoming the core force of the new wave of capital influx.

Analysts say that the key driver for the return of institutional funds in 2026 will be the implementation of more cryptocurrency regulations, especially the Clarity Act, which is seen as an important catalyst.

JPMorgan believes that once the bill is passed, it will trigger a new wave of institutional adoption and stimulate venture capital, mergers and acquisitions (M&A), and initial public offerings (IPOs) in the crypto space.

Reflecting on the past 2025, JPMorgan summarized the overall flow of funds by consolidating ETF capital flows, CME futures data, venture financing, and corporate purchases:

• Retail-led ETFs: Last year's Bitcoin and Ethereum spot ETF inflows were mainly driven by retail investors.
• Relatively cautious institutions: In contrast, CME futures data representing professional institutions and hedge funds showed less enthusiasm than in 2024, indicating that traditional financial institutions operated more conservatively last year.
• Corporate accumulation boom: Digital asset reserve companies (DATs) outside of Strategy made large purchases of Bitcoin.

The report shows that over half of the capital inflow in 2025 (about $68 billion) came from corporate buying, with Strategy contributing approximately $23 billion, unchanged from 2024; meanwhile, the total cryptocurrency purchases by other DAT companies reached about $45 billion, a explosive growth compared to $8 billion the previous year.

JPMorgan mentioned that although the regulatory environment in the U.S. has improved, the performance of the crypto venture capital (VC) market in 2025 was below expectations. The reason is that funds that should have been invested in startups shifted instead to DAT companies that offer “immediate liquidity.” Many venture capital firms even chose to directly participate in financing for publicly listed mining companies or coin-holding firms.

Looking ahead, JPMorgan expects that in 2026, the inflow of funds into the cryptocurrency market will continue to grow, but the driving force will likely be led by institutional investors rather than retail investors or DAT companies.

JPMorgan analysts also pointed out last week that signs of “de-risking” in the crypto market are fading, with ETF capital flows and several indicators showing signs of stabilization. They added: