JPMorgan says digital asset inflows have weakened sharply at the start of 2026. In its latest market report, the bank estimated that net inflows into digital assets totaled about $11 billion over the past three months, only one-third of the level recorded in the first quarter of 2025. If the current pace continues, the bank sees total 2026 crypto inflows topping out at roughly $44 billion, far below $130 billion last year.
The report, led by Managing Director Nikolaos Panigirtzoglou, combines ETF flows, CME futures activity, crypto venture capital investment, and large institutional treasury purchases such as those made by Strategy. JPMorgan said crypto demand fell notably entering the new year. Spot demand stayed weak, and while ETFs posted occasional increases, those inflows were not consistent.
CME futures activity points to softer institutional demand
According to the report, open interest in CME futures has weakened considerably compared with 2024 and 2025. JPMorgan said that signals overall institutional demand through futures has turned negative so far this year. The bank linked that drop in institutional buying to the soft performance seen in the first quarter.
JPMorgan also said Strategy’s Bitcoin accumulation in the first quarter of 2026 was funded mainly through stock issuance. The company has said it plans to keep using a mix of common stock and perpetual preferred shares to support additional Bitcoin purchases. Other corporate treasuries, by contrast, have remained more defensive. On that basis, the bank said few treasury buyers beyond Strategy were actively adding Bitcoin.
Ethereum buyers remain scarce as some funds exit crypto
On the Ethereum side, BitMine was identified as one of the limited institutional buyers. By November, even funds such as ETHZilla had started liquidating crypto holdings and reallocating into traditional equities. That shift points to a more defensive market stance and a pullback in institutional risk-taking.
JPMorgan said both retail and institutional investor flows have stayed muted since January, with some readings slipping into negative territory. Most digital asset inflows so far this year, the bank said, have come from Strategy’s Bitcoin purchases and concentrated venture capital investment in crypto.
Listed miners turned into net sellers in the first quarter
The report added that publicly listed Bitcoin mining companies became net sellers in the first three months of 2026. That change came alongside a steep decline in network difficulty. Some major miners have also started redirecting computational resources toward artificial intelligence applications. JPMorgan said the selling pressure reflects not only market concerns, but also companies shifting part of their business focus toward AI ventures.
In the bank’s view, weaker institutional demand, softer retail flows, and repositioning by mining firms are all adding pressure to crypto markets. Demand is becoming more dependent on a small number of buyers, especially Strategy, while the use of preferred equity funding points to a market structure that is more cautious and more fragmented.
JPMorgan said a recovery in macro conditions or a change in global risk appetite may be needed to stabilize or revive digital asset flows. For now, the bank sees 2026 as a more difficult year for the crypto sector than recent years.