JPMorgan Flags Sharp Slowdown in Crypto Inflows to Start 2026

Crypto inflows slowed sharply in Q1, with demand narrowing to corporates as ETFs and futures activity weakened.

Crypto capital flows opened 2026 on a weaker footing, breaking expectations of continued expansion. Early data suggest participation has narrowed, with fewer broad-based inflows across the market. Analysts now point to a more uneven structure behind current capital movement.

ETF Outflows and Weak Futures Demand Weigh on Q1 Crypto Flows

In a recent analysis, JPMorgan estimates total digital asset inflows reached roughly $11 billion in Q1 2026. That figure stands at about one-third of the levels recorded during the same period in 2025. Based on this pace, annualized flows could reach around $44 billion, far below last year’s $130 billion total.

The bank’s analysts, led by Nikolaos Panigirtzoglou, calculate flows by combining multiple segments. These include crypto fund inflows, activity on CME Group futures, venture capital funding, and corporate treasury purchases. That broader framework provides a more complete picture of capital entering the sector.

Corporate buying, particularly from Strategy, accounted for a large share of Q1 inflows. Purchases linked to Michael Saylor remained dominant. Meanwhile, both retail and institutional investor participation stayed muted or negative during the quarter.

Furthermore, activity on CME contracts suggests institutional demand turned negative compared to the previous two years. At the same time, spot ETF flows for Bitcoin and Ethereum recorded outflows, especially in January. Bitcoin ETFs saw a modest recovery in March, though not enough to offset earlier weakness.

On the other hand, corporate treasury behavior showed mixed signals. While Strategy continued to accumulate Bitcoin, some smaller firms reduced their holdings. In several cases, companies sold crypto assets to fund share buybacks or strengthen balance sheets. 

Bitcoin Accumulation Persists at Strategy, While Mining Firms Reduce Holdings

Strategy’s purchases relied heavily on equity issuance during the quarter. The firm also signaled plans to continue using common and preferred stock to fund further Bitcoin accumulation. However, other corporations appear more defensive, limiting new exposure to digital assets.

Mining companies added more selling pressure during the quarter. Many publicly listed miners sold part of their Bitcoin or used it as collateral for loans. These moves helped them raise cash, pay for operations, or invest in new projects. Some firms also redirected spending toward artificial intelligence infrastructure, which they see as a growing opportunity.

Venture capital funding remained relatively strong despite broader weakness. Annualized funding levels exceeded those of the previous two years. However, deal activity narrowed, with fewer participants and capital concentrated in larger rounds led by established firms.