JPMorgan Report: Institutional Funds Will Drive Continuous Growth in the Cryptocurrency Market by 2026

According to the latest analysis report released by JPMorgan, the cryptocurrency market is expected to experience a new wave of capital inflows by 2026, with the driving force shifting from retail investors to a broader range of institutional investors.

The report points out that in 2025, the entire cryptocurrency market attracted a record nearly $130 billion in capital inflows, representing about a one-third increase compared to 2024.

Analysis suggests that this growth is mainly driven by capital inflows into BTC and ETH spot ETFs (likely dominated by retail investors) and significant increases in holdings by Digital Asset Reserve Nation (DAT) companies, with these two forces jointly pushing the market forward.

Notably, the scale of DAT corporate purchases, excluding Strategy, surged from $8 billion in 2024 to approximately $45 billion in 2025, becoming the largest source of incremental funds last year. However, this corporate buying trend has significantly slowed since October 2024.

However, analysts believe that as institutional investors become the new dominant force in the market, capital inflows into the cryptocurrency market are expected to further increase in 2026. This is mainly due to the potential passage of regulatory frameworks such as the U.S. Clarity Act and a new round of investments and mergers surrounding cryptocurrency infrastructure, which will pave the way for traditional financial institutions to enter the market.

Analysts also observed that although the total venture capital investment in cryptocurrencies slightly increased in 2025, the number of transactions declined and became more concentrated on later-stage projects, with some risk funds diverted to DAT companies.

However, with key indicators such as current market sentiment and ETF capital flows showing signs of stabilization, it suggests that the trend of retail and institutional investors reducing holdings in Q4 2025 may have already ended.

In summary, after experiencing explosive growth driven by retail sentiment and specific corporate financial strategies, the market is gradually moving toward a new stage characterized by full institutional participation, clear regulatory support, and more sustainable development.

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