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 2025
Panigirtzoglou explained that the inflows observed in 2025 were largely attributed to Bitcoin and Ethereum (ETH) ETFs, which the analyst suggests were primarily fueled by retail investors, as well as Bitcoin acquisitions by DAT companies.
In 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.
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The analysts noted that over half of the total digital asset inflows in 2025, approximately $68 billion, came from DAT companies. Another $23 billion was attributed to formal strategies, marking a slight increase from $22 billion in Bitcoin buying from the previous year.
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.
While total crypto venture capital funding saw a modest increase in 2025 compared to 2024, the number of deals declined sharply, and investment activity became increasingly concentrated in later-stage funding rounds.
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 Interest
Looking 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.
This anticipated legislation is expected to further entrench institutional adoption of digital assets, along with renewed institutional engagement in areas like venture capital funding, mergers and acquisitions, and initial public offerings (IPOs).
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.
This is attributed to issues related to key provisions, which the firm’s CEO, Brian Armstrong, has described as making this version “materially worse than the current status quo”.
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
Ronaldo Marquez
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