Wall Road funding financial institution JPMorgan (JPM) stated the tempo of capital flowing into digital property slowed markedly within the first quarter of 2026, with whole inflows estimated at round $11 billion.
That suggests an annualized run charge of roughly $44 billion, about one-third of the tempo seen in 2025, in response to the report revealed final week.
“Investor flows, both retail or institutional, have been small and even unfavourable YTD with the majority of the digital asset move in Q1’26 stemming from Technique’s (MSTR) bitcoin purchases and concentrated crypto VC funding,” wrote analysts led by Nikolaos Panigirtzoglou.
Crypto markets had a unstable and broadly unfavourable first quarter, with costs and market worth retreating sharply amid a risk-off backdrop. Whole crypto market capitalization fell roughly 20% over the interval, whereas bitcoin dropped round 23% and ether (ETH) declined greater than 30%, marking one of many weakest first-quarter performances in years.
The selloff was pushed by macroeconomic and geopolitical pressures, triggering liquidations and a broad pullback in threat property, with altcoins hit even more durable.
Regardless of the downturn, costs stabilized towards the top of the quarter, with bitcoin consolidating close to the $70,000 stage as ETF demand improved and a few pockets of the market, equivalent to choose altcoins and onchain exercise, confirmed resilience.
The financial institution’s estimate aggregates crypto fund flows, Chicago Mercantile Alternate (CME) futures positioning, enterprise capital fundraising and company treasury exercise, together with bitcoin purchases by corporations equivalent to Technique.
The analysts stated investor-driven flows had been notably weak. Positioning in bitcoin and ether CME futures softened versus 2024 and 2025, suggesting institutional demand might have turned barely unfavourable year-to-date. Spot bitcoin and ether exchange-traded funds (ETFs) additionally noticed internet outflows throughout the quarter, concentrated in January, earlier than a modest rebound in bitcoin ETF inflows in March.
The financial institution’s analysts attributed many of the quarter’s inflows to company treasury exercise and enterprise funding. Technique remained a dominant purchaser, funding bitcoin purchases largely by means of fairness issuance, whereas signaling continued reliance on inventory and most popular issuance to finance accumulation. Different company holders had been extra defensive, with some promoting bitcoin to fund buybacks.
Bitcoin miners had been internet sellers throughout the quarter, the report stated, as corporations offered holdings or used them as collateral to shore up liquidity, fund capital expenditures or handle liabilities. The analysts characterised the promoting as pushed by tighter financing situations and stability sheet self-discipline slightly than misery.
Crypto enterprise capital was a relative shiny spot. Funding tracked an annualized tempo above the prior two years, although exercise was more and more concentrated in fewer, bigger offers led by established corporations. Capital continued to rotate towards infrastructure, stablecoins, funds and tokenization, with much less curiosity in gaming, non-fungible tokens (NFTs) and exchange-related initiatives, the report added.
Learn extra: Bitcoin holds floor as gold, silver slide on ETF outflows and liquidity strains: JPMorgan