Institutional funds continue to pour in. Will the crypto market hit new highs again in 2026?

【ChainNews】JPMorgan’s latest analysis report reveals many interesting signals. The crypto market has absorbed nearly $130 billion in 2025, with most of the funds flowing into Bitcoin and Ethereum ETFs, as well as corporate stock buybacks. But now, the situation is starting to change.

Since October last year, the pace of corporate purchases has noticeably slowed. What does this indicate? It suggests that the phase driven by retail investors may be cooling down. However, analysts are not pessimistic; instead, they expect funds to continue increasing in 2026, with a key change in the main players—institutional investors will become the primary drivers of growth.

Why are they so optimistic? There are mainly two reasons. First, the gradual implementation of regulatory frameworks like the U.S. “Clear Act” will eliminate many uncertainties, encouraging large capital to enter the market. Second, this regulatory clarity will trigger a chain reaction—stablecoin issuers, payment platforms, exchanges, and other sectors will see more venture capital, mergers and acquisitions, and even IPO waves.

But there’s also another side to consider: although crypto venture capital has seen slight growth, trading volumes are declining, and early-stage financing activities are noticeably weakening. This indicates market segmentation—large sums are flowing into mature sectors, while funding environments for small projects are tightening. For investors, this could mean opportunities as well as risks, depending on which side you’re on.