Bitcoin and Crypto ETFs Expected to Attract Over $130 Billion in Inflows This Year, Predicts JPMorgan

As per analysts at JPMorgan, cryptocurrencies, especially Bitcoin (BTC), are likely to draw in substantial inflows through exchange-traded funds (ETFs) in 2026, surpassing those of 2025. The analysis, led by Nikolaos Panigirtzoglou, reveals a key trend: last year, capital entering the crypto space via ETFs hit an all-time high of $130 billion, primarily fueled by increasing interest in digital asset treasuries (DATs).

Key Takeaways

JPMorgan predicts that crypto-focused ETFs, particularly for Bitcoin, may attract over $130 billion in inflows in 2026.
The majority of inflows in 2025 were driven by Bitcoin and Ethereum ETFs, mainly from retail investors and DAT companies.
Half of the crypto inflows in 2025 were attributed to DAT companies, highlighting their growing role in the industry.
Regulatory changes, like the anticipated Crypto Market Structure Bill, are expected to inspire more institutional engagement in cryptocurrencies.
Bitcoin is currently priced at around $96,050, showing a notable increase and a return of broader market inflows.

Crypto

DAT Companies Drive Crypto Inflows in 2025

Panigirtzoglou noted that the inflows recorded in 2025 were predominantly sourced from Bitcoin and Ethereum (ETH) ETFs. He highlighted that retail investors primarily drove this interest, alongside Bitcoin purchases by DAT companies. Conversely, there was a noticeable decrease in engagement from institutional investors and hedge funds, as suggested by reduced buying activity in Bitcoin and Ethereum futures on the Chicago Mercantile Exchange (CME) compared to 2024.

Importantly, over half of the total digital asset inflows in 2025, amounting to about $68 billion, originated from DAT companies. Additionally, around $23 billion was attributed to structured strategies, indicating a slight rise from the previous year's $22 billion in Bitcoin purchases. Surprisingly, other DATs acquired around $45 billion in digital assets, jumping significantly from just $8 billion in 2024. However, most of these transactions occurred early in the year, and by October, the crypto purchasing momentum from DATs significantly slowed down.

Crypto venture capital funding also played a role in the capital flows but remained far below the highs seen in 2021 and 2022. While total venture capital funding in crypto slightly increased in 2025 compared to 2024, the number of deals dropped sharply, with more investment activity happening in later-stage rounds. JPMorgan noted that this stagnation in venture funding may be partly due to an increasing flow of capital towards DATs, diverting funds away from early-stage projects in favor of treasury strategies that offer immediate liquidity.

Anticipated Regulatory Changes to Encourage Institutional Engagement

Looking ahead, analysts predict a resurgence in institutional crypto inflows in 2026, potentially driven by upcoming regulatory measures such as the Crypto Market Structure Bill (CLARITY Act) in the United States. This legislation is expected to facilitate greater institutional adoption of digital assets and rekindle interest in venture capital funding, mergers, acquisitions, and initial public offerings (IPOs).

However, the markup of this bill has encountered delays as crypto industry leaders, including Coinbase’s CEO Brian Armstrong, have withdrawn support. Armstrong criticized the latest version of the legislation, asserting that it is “materially worse than the current status quo” due to problematic key provisions.

Crypto The daily chart displays BTC’s price approaching the critical $100,000 mark. Source: BTCUSDT on TradingView.com

At the time this article was composed, Bitcoin, the leading cryptocurrency, was trading at $96,050, reflecting a 10% increase over the past two weeks. This surge is indicative of broader inflows returning to the market since the start of the year.

Featured image from DALL-E, chart from TradingView.com