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

JPMorgan Chase analysts pointed out that after the cryptocurrency market attracted nearly $130 billion in inflows in 2025, reaching a record high, there is still room for further growth in 2026. However, the main drivers of this frenzy 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 surged 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 come from 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, M&A, and IPO activities in the cryptocurrency sector. Reflecting on the past 2025, JPMorgan summarized the overall flow of funds by consolidating ETF capital flows, CME futures data, venture capital financing, and corporate purchases:

• Retail-led ETFs: Last year, the capital inflow into Bitcoin and Ethereum spot ETFs was 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 amount of cryptocurrencies purchased by other DAT companies was about $45 billion, a explosive growth compared to $8 billion in the previous year. JPMorgan mentioned that despite the improved regulatory environment in the US, the performance of the cryptocurrency 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 can provide “immediate liquidity,” with many venture capital firms even choosing to directly participate in financing for listed mining companies or coin-holding firms. Looking ahead, JPMorgan expects that in 2026, cryptocurrency market capital inflows will continue to grow, but the driving force will likely be led by institutional investors rather than retail investors or DAT companies. Last week, JPMorgan analysts also pointed out that signs of “de-risking” in the cryptocurrency market are fading, with ETF capital flows and several indicators showing signs of stabilization. They added: