JPMorgan analysts predict that crypto-focused exchange-traded funds (ETFs), especially for Bitcoin, will see significantly higher inflows in 2026 compared to 2025. Led by Nikolaos Panigirtzoglou, their analysis notes that capital entering the crypto market via ETFs hit a record $130 billion last year, fueled by growing interest in digital asset treasuries (DATs).
In 2025, inflows were largely driven by Bitcoin and Ethereum ETFs, which analysts say were primarily supported by retail investors and Bitcoin purchases by DAT companies. Meanwhile, institutional investor and hedge fund activity—measured by Bitcoin and Ethereum futures trading on the CME—appeared to decline relative to 2024.
The report indicates that over half of the total digital asset inflows in 2025, about $68 billion, came from DAT companies. An additional $23 billion came from formal strategies, slightly up from $22 billion the previous year. Other DATs acquired roughly $45 billion in digital assets, a sharp increase from just $8 billion in 2024. However, most of these purchases took place earlier in the year, and by October, buying momentum from DATs had slowed noticeably.
Crypto venture capital funding also contributed to overall capital flows, though it remained well below the peaks seen in 2021 and 2022. While total venture funding saw a modest rise in 2025 compared to 2024, the number of deals fell sharply, and investment became more concentrated in later-stage rounds. JPMorgan suggested that some of the slower growth in venture funding may be due to capital being redirected toward DATs, as funds that might have gone to early-stage startups were instead allocated to more liquid treasury strategies.
Looking ahead, analysts expect institutional crypto flows to rebound in 2026, potentially driven by new regulatory measures such as the Crypto Market Structure Bill (CLARITY Act) in the U.S. Such legislation could strengthen institutional adoption of digital assets and renew activity in areas like venture capital, mergers and acquisitions, and IPOs.
However, progress on the bill faced a setback late Wednesday as key crypto industry players, including Coinbase, withdrew their support. CEO Brian Armstrong stated that certain provisions made this version “materially worse than the current status quo.”
At the time of writing, Bitcoin was trading at $96,050, up 10% over the past two weeks, as broader market inflows have resumed since the start of the year.
Frequently Asked Questions
Of course Here is a list of FAQs about JPMorgans forecast for Bitcoin and crypto ETFs designed to cover a range of questions from beginner to more advanced
Beginner Definition Questions
1 What exactly did JPMorgan predict
JPMorgan analysts forecast that spot Bitcoin ETFs could attract over 130 billion in new investment money into the crypto market during 2024
2 What is a spot Bitcoin ETF
Its an exchangetraded fund that directly holds Bitcoin Instead of buying and storing Bitcoin yourself you can buy shares of this ETF through a regular brokerage account giving you exposure to its price
3 Why is 130 billion such a big deal
Its a massive amount of new capital For context the total net assets in all gold ETFs globally are about 100 billion This prediction suggests crypto ETFs could quickly become a major asset class for institutional and retail investors
Mechanism Impact Questions
4 How would these ETFs bring in so much money
They remove major hurdles for traditional investors no need for crypto wallets private keys or unregulated exchanges Pension funds financial advisors and everyday investors can now access Bitcoin through the familiar regulated stock market
5 Where is this 130 billion expected to come from
JPMorgan suggests a significant portion could come from investor rotation
From current Bitcoin holdings People selling Bitcoin held in trusts or on exchanges to buy the cheaper more efficient ETFs
From other assets Investors shifting a small percentage of their portfolio from gold hedge funds or other alternative assets into crypto for diversification and growth potential
6 What are the main benefits of investing through a Bitcoin ETF
Convenience Familiarity Buysell in your existing brokerage account
Safety Regulation Held by large regulated custodians
Liquidity Easy to trade during market hours
No Technical Hassle No worry about private keys wallet security or transferring crypto
Advanced Critical Questions
7 What are the potential downsides or risks of this ETFdriven growth