JPMorgan: Crypto Market Inflows Reach $130 Billion Record, Institutional Wave Expected by 2026

JPMorgan report shows that in 2025, capital inflows into the crypto market will reach a record of 130 billion USD, a one-third increase over 2024. The funds mainly come from BTC, ETH products, and treasury companies with 68 billion USD allocated. Growth is expected to continue into 2026, driven by a shift from treasury companies to institutional investors. Improved regulation in the US will promote investments in stablecoins and blockchain infrastructure.

The Dual Engines Behind the $130 Billion Capital Inflow Revealed by JPMorgan

Recognition of digital assets by global financial institutions is accelerating. This JPMorgan report not only highlights the impressive performance of the crypto market in 2025 but also analyzes the structural changes in capital inflows. The annual inflow of 130 billion USD grew approximately 33% compared to 2024, a rare speed in the global financial markets, indicating that digital assets are transitioning from fringe investments to mainstream allocations.

The capital inflow is driven by two main forces. The first is Bitcoin and Ethereum-related investment products, primarily involving retail investors. Since the approval of the US Bitcoin spot ETF in January 2024, it has attracted hundreds of millions of dollars, becoming the main channel for retail and some institutional allocations of Bitcoin. Although Ethereum spot ETFs launched later, they also contributed significant capital inflows in 2025. The success of these investment products validates the feasibility of integrating traditional financial infrastructure with crypto assets.

The second engine is large allocations by digital asset treasury companies, which contributed about 68 billion USD, accounting for over half of the total annual inflow. Treasury companies are publicly listed firms that include digital assets like Bitcoin on their balance sheets, with MicroStrategy being the most prominent example. Since 2020, MicroStrategy has continuously purchased Bitcoin, holding over 400,000 coins by the end of 2025. Other followers include tech companies like Tesla, Block, Coinbase, and international firms such as Japan’s Metaplanet.

Breakdown of the 2025 Capital Inflow Structure

Bitcoin and Ethereum investment products: approximately 62 billion USD

Digital asset treasury company allocations: approximately 68 billion USD

Other channels (direct institutional allocations, mining investments, etc.): totaling 130 billion USD

The purchasing logic of treasury companies differs from that of retail investors. They see Bitcoin as a financial asset to hedge against fiat depreciation, rather than a short-term trading target. This long-term holding strategy effectively reduces market supply and provides structural support for prices. MicroStrategy’s success has also inspired more companies, especially traditional firms with strong cash flows but limited growth opportunities, to allocate part of their funds into Bitcoin.

However, a key observation in the JPMorgan report is that since October 2025, the pace of treasury companies’ purchases has significantly slowed. This slowdown may stem from various reasons. First, Bitcoin prices hovered between 90,000 and 100,000 USD in the second half of 2025, reducing the attractiveness of purchases for treasury companies using dollar-cost averaging at high prices. Second, some treasury companies may have reached their risk tolerance limits and cannot further increase Bitcoin holdings on their balance sheets.

The slowdown in treasury purchases hints at a structural adjustment in the market. If this trend continues into 2026, the market will need to find new sources of demand to sustain capital inflows. This is the context in which JPMorgan predicts institutional investors will become the core drivers.

Key Support for Institutional Investors in 2026

For the growth expected in 2026, JPMorgan emphasizes that institutional investors will be the main driving force. This judgment is not unfounded but based on substantial improvements in the regulatory environment. Key support comes from the refinement of regulatory frameworks, especially the advancement of laws like the US Digital Asset Market Clarity Act.

This act aims to clarify standards for digital asset classification and regulatory authority, resolving long-standing ambiguities between securities and commodities regulation. Under the current framework, the SEC and CFTC have overlapping and unclear jurisdiction over digital assets, leading many projects to face regulatory uncertainty. The new law will establish clear classification standards, enabling project developers, exchanges, and investors to know which regulator oversees them and what rules they must follow.

This regulatory clarity will effectively reduce compliance risks for institutional participation. For pension funds, insurance companies, asset managers, and other traditional institutional investors, compliance is a prerequisite for engaging in any asset class. Over the past few years, many institutions have shown interest in digital assets but have held back due to regulatory uncertainty. Once the regulatory framework is established, these institutions will be able to demonstrate the compliance of their digital asset investments to their boards and regulators.

The JPMorgan report specifically points out that improved regulation will further promote investments and M&A activities in stablecoins, payment services, and blockchain infrastructure. Stablecoins are a key bridge connecting traditional finance and digital assets, with the global stablecoin market exceeding 200 billion USD. As regulation becomes clearer, more traditional financial institutions will launch compliant stablecoin products, competing with USDC, USDT, and others for market share.

The payment sector also presents opportunities. Giants like Visa, Mastercard, and PayPal have begun integrating digital asset functions, but regulatory uncertainties have kept many innovations in trial phases. With clearer regulation, these companies will accelerate the launch of digital asset payment products, attracting more institutional investors’ attention to related infrastructure companies.

Blockchain infrastructure is the foundational support of the entire ecosystem. From public chain development, wallet services, custody solutions to compliance technology, these areas require substantial capital investment. JPMorgan forecasts more M&A and IPO activities targeting infrastructure companies in 2026, providing institutional investors with diversified channels to participate in the digital asset ecosystem.

Positive Signals and Structural Changes in Global Capital Flows

Market data already show positive signals. In 2025, global digital asset investment products experienced near-record net inflows, with mainstream assets like Ethereum attracting significantly more funds compared to 2024. Notably, the accelerated inflow into Ethereum reflects investors’ renewed recognition of its ecosystem value. As Layer 2 solutions mature and real-world applications increase, Ethereum is increasingly viewed as a practical infrastructure rather than just a speculative asset.

Changes in geographic distribution are also noteworthy. Some European markets shifted from net outflows to net inflows, reflecting a recovery in global investment sentiment and diversified allocation needs. Over the past few years, European investors have been cautious about digital assets, partly due to regulatory uncertainties under the EU’s MiCA law. With the law’s official implementation at the end of 2024, providing a clear regulatory framework, participation from European institutions and retail investors has significantly increased.

The Asia-Pacific region also demonstrates strong demand. Financial centers like Hong Kong and Singapore are actively promoting digital asset regulatory sandboxes and licensed exchanges, attracting substantial Asian capital. Japan’s treasury company Metaplanet, emulating MicroStrategy, has made large Bitcoin purchases, becoming a landmark event in the Asian market. These regional dynamics together form a diversified pattern of global capital inflows.

Behind JPMorgan’s forecast is the trend of digital assets transitioning from fringe investments to mainstream allocations. As regulatory certainty improves and institutional participation deepens, the crypto market in 2026 may achieve more stable growth within a compliant framework, offering new diversified options for global asset allocation. This transformation is reflected not only in the scale of capital but also in the participant structure. When pension funds and sovereign wealth funds begin allocating to digital assets, the market’s maturity and stability will be significantly enhanced.

It is worth noting that JPMorgan, as one of the world’s largest financial institutions, issuing such an optimistic forecast for the digital asset market is itself an important signal. The bank has not only published research reports but is also actively deploying in digital assets, including launching JPM Coin for institutional settlement and exploring blockchain applications in securities trading. This “walk the talk” attitude strengthens market confidence in institutional participation trends.