According to analysts at JPMorgan, crypto-focused exchange-traded funds (ETFs), particularly for Bitcoin (BTC), are expected to see inflows in 2026 that will far exceed those from 2025.
Led by Nikolaos Panigirtzoglou, the analysis highlights a significant trend where capital flowing into the crypto market through ETFs reached a record high of $130 billion last year, driven by a growing interest in digital asset treasuries (DATs).
DAT Companies Lead Crypto Inflows In 2025In contrast, participation from institutional investors and hedge funds, as indicated by the buying activity in Bitcoin and Ethereum Chicago Mercantile Exchange (CME) futures, appeared to have declined compared to 2024.
Notably, other DATs acquired about $45 billion in digital assets, a significant rise from just $8 billion in 2024. However, most of these purchases occurred earlier in the year, and by October, the momentum in crypto buying from DATs had markedly decreased.
Crypto venture capital funding also contributed to the overall capital flows, though this area remained substantially lower than the peaks experienced in 2021 and 2022.
JPMorgan further suggested that this muted growth in venture funding was, in part, due to the increasing allocation of capital toward DATs. Funds that might have otherwise been directed to early-stage startups were increasingly diverted toward treasury strategies that provide immediate liquidity.
Regulatory Changes Anticipated To Boost Institutional InterestLooking forward, the analysts expect a rebound in institutional crypto flows in 2026, which could be spurred by the anticipated passage of additional regulatory measures, such as the Crypto Market Structure Bill (CLARITY Act) in the US.
However, the expected markup of this bill has been delayed late on Wednesday, as crypto industry leaders, including the cryptocurrency exchange Coinbase (COIN), have withdrawn their support for the legislation.
At the time of writing, the market’s leading cryptocurrency, Bitcoin, was trading at $96,050, having recorded gains of 10% over the previous fourteen days, as broader inflows have already returned to the market since the beginning of the year.
Featured image from DALL-E, chart from TradingView.com
