In 2026, crypto market funds will surpass last year, with institutional investors taking the lead again

JPMorgan Chase’s latest analysis indicates that although the cryptocurrency market has set a record of $130 billion in capital inflows by 2025, there is still potential for further expansion this year. More notably, the driving force behind this capital wave is quietly shifting—from an era dominated by retail investors and corporations to a new landscape led by institutional investors.

Led by Nikolaos Panigirtzoglou, Managing Director at JPMorgan Chase, the analysis team emphasized in a recent report that the capital inflow in 2025 grew by over 30% compared to the previous year, reaching a new high. As we enter 2026, with the regulatory environment becoming increasingly clear, market expectations are that institutional buying will return to the stage, becoming the core force driving the next wave of capital.

Capital Map of 2025: Retail, Corporations, and Institutions Each Play Their Role

Last year’s capital flows showed interesting differentiation. In the spot ETF sector, Bitcoin and Ethereum fund inflows were mainly driven by retail investors, demonstrating strong retail participation. However, CME futures data shows that CME buying interest—representing traditional financial institutions and hedge funds—was actually weaker than in 2024, suggesting that professional institutional investors adopted a more conservative strategy last year.

More notably, corporate buying surged. Over half of the 2025 capital inflow (about $68 billion) came from corporate buyers. Among them, companies like Strategy contributed approximately $23 billion, roughly the same as in 2024; while other digital asset reserve companies (DATs) purchased about $45 billion, a sixfold increase from $8 billion the previous year, representing explosive growth.

Why Did Institutional Investors Perform Cautiously Last Year?

This phenomenon reflects subtle shifts in market capital flow dynamics. Although the regulatory environment in the U.S. improved, the crypto venture capital (VC) market in 2025 did not flourish as expected. The reason is that funds originally intended for startups were attracted to DAT companies that offer “immediate liquidity.” Many venture capital firms even chose to directly participate in financing for publicly listed mining companies or coin-holding enterprises instead of traditional startup investments. This shift in capital allocation partly explains why institutional performance in the CME futures market was relatively restrained.

Regulatory Breakthroughs as Triggers for Institutional Re-entry

Looking ahead this year, JPMorgan believes that the key driver for institutional capital returning is further regulatory improvements, with the “Digital Asset Market Clarity Act” viewed as an important catalyst. Once passed, it is expected to trigger a new wave of institutional adoption, stimulating venture funding, M&A, and IPO activities in the crypto space, creating a more regulated and active ecosystem.

Capital Landscape of 2026: The Era of Institutions Begins

Since 2026, JPMorgan expects the scale of capital inflows into the crypto market to continue growing, with the driving force increasingly led by institutional investors, replacing the dominance of retail investors and DAT companies. This signifies a deeper structural shift—from a “retail + corporate” dual structure to a new pattern led by institutions.

The firm also notes that the position reduction behaviors in Q4 2025 have come to an end, with both retail and institutional holdings stabilizing. This creates favorable conditions for larger-scale institutional capital inflows this year. As regulatory clarity improves and market infrastructure further develops, institutional participation is expected to increase, bringing more stability and depth to the cryptocurrency market.