Analysts at JPMorgan Chase have reported that crypto market inflows reached a record high of nearly USD 130 billion in 2025. This figure represents a significant increase, approximately one-third higher than in 2024. The investment bank anticipates that capital inflows will continue to expand in 2026, with institutional investors expected to play an increasingly dominant role in driving crypto market growth.
Main Drivers of 2025 Growth: ETFs and DAT Buying
In a report released on Wednesday, a JPMorgan analysis team led by managing director Nikolaos Panigirtzoglou estimated total crypto market inflows by aggregating data from ETF fund flows, implied positioning from CME futures, crypto venture capital fundraising, and purchases by Digital Asset Treasury (DAT) entities. This comprehensive approach provided a detailed view of the market's capital movements.
The report identified Bitcoin and Ether ETFs as the primary contributors to the significant inflow growth observed in 2025, with a notable skew toward retail investor participation. Additionally, consistent Bitcoin purchases by DAT companies, excluding those classified under "Strategy," played a crucial role in boosting overall inflows. In contrast, implied buying from Bitcoin and Ether CME futures saw a marked slowdown in 2025, falling below 2024 levels. This indicates a reduction in participation from institutional investors and hedge funds during this period.
DAT Becomes the Largest Source of Demand, But Momentum Slows
Digital Asset Treasury (DAT) companies were responsible for over half of the total digital asset inflows in 2025, accounting for approximately USD 68 billion. Strategy, a prominent DAT entity, invested around USD 23 billion in Bitcoin, a figure broadly in line with its approximately USD 22 billion in purchases recorded in 2024.
Other DAT firms collectively acquired about USD 45 billion in digital assets in 2025, a substantial increase compared to the USD 8 billion recorded in 2024. However, analysts have cautioned that the majority of DAT buying activity was concentrated in the earlier part of the year and has noticeably slowed down since October. Large holders, including Strategy and BitMine, have adopted a more cautious approach in recent months, suggesting a shift in market sentiment or strategy.
Venture Capital Recovery Remains Limited, Early-Stage Investment Cools
Crypto venture capital also contributed to overall inflows, although activity remained significantly below the peaks observed in 2021–2022. While total fundraising volumes in 2025 saw a slight increase compared to 2024, the number of deals experienced a sharp decline. Investment has increasingly concentrated in later-stage funding rounds, with a clear slowdown in early-stage investment.
Analysts pointed out that the weak recovery in venture capital contrasts with a more supportive U.S. regulatory environment. This suggests a notable shift in the composition of capital flows. Some funds that previously focused on early-stage startups have redirected their strategies toward DAT treasury operations, which offer immediate liquidity and lower long-term lock-up risks compared to traditional venture investments.
JPMorgan also observed that several large crypto venture firms have begun selectively leading DAT financing rounds by utilizing their available liquid capital.
2026 Outlook: Institutional Capital to Take the Lead
Looking ahead to 2026, JPMorgan anticipates that total crypto market inflows will grow further. However, the driving force behind this growth is expected to shift from the retail- and DAT-led dynamics of 2025 toward more pronounced institutional participation. This indicates a maturing market where larger, more established entities are expected to exert greater influence.
Analysts noted last week that the market's de-risking process appears to be nearing completion. Indicators such as ETF flows are showing signs of stabilization, suggesting a more stable investment environment. They further commented:
The phase in which both retail and institutional investors were simultaneously reducing crypto exposure during the fourth quarter of 2025 has most likely come to an end.
Overall, as regulatory clarity continues to improve and the market structure matures, JPMorgan believes that 2026 could be a year where institutional capital reclaims its position as the dominant force in crypto markets.