JPMorgan: Cryptocurrency inflows fall to $11 billion in Q1

• Cryptocurrency flows will fall sharply in 2026.
• Bitcoin leads corporate treasury purchases.
• Institutional demand weakens as ETFs exit.

Cryptocurrency flows registered a significant drop in the first quarter of 2026, contradicting expectations of growth throughout the year. JPMorgan analysts estimate that the total volume was around US$11 billion, about a third of that observed in the same period of 2025.

This performance indicates an annualized rate of approximately US$44 billion, well below the record of US$130 billion achieved last year. The analysis considers different sources, including cryptocurrency funds, CME futures contracts, venture capital funding, and corporate bitcoin purchases.

One of the main highlights of the quarter was the role of corporate treasuries. Most of the flows came from these companies, particularly from bitcoin acquisitions financed by fundraising strategies. In contrast, individual and institutional investors showed reduced participation.

The derivatives market also showed signs of weakening. Positioning in CME futures contracts fell for 2024 and 2025, suggesting less institutional interest in this segment. At the same time, spot bitcoin and Ethereum ETFs faced significant outflows, especially in January, although they recorded occasional inflows in March.

In the corporate environment, behavior was uneven. While some companies increased their bitcoin holdings, others opted to sell assets to buy back shares or improve liquidity.

“In the first quarter of 2026, [Strategy's] bitcoin purchases were primarily funded through equity issuance,” the analysts wrote. “Furthermore, the company indicated its intention to continue using a combination of common stock and perpetual preferred stock to support its ongoing bitcoin accumulation, while other corporate treasuries maintain a fairly defensive stance.”

Bitcoin mining companies also changed their behavior and began acting as net sellers. Part of these sales was used to finance operations, investments, and financial adjustments, including initiatives related to artificial intelligence.

Venture capital funding remained active, but more concentrated. There were fewer rounds, but with larger amounts, led by companies already established in the sector.

“Overall, our estimate of total digital asset flows decreased considerably in the first quarter of the year, registering an annualized pace close to one-third of that observed last year. Furthermore, investor flows, both retail and institutional, were small or even negative year-to-date, with the majority of digital asset flows in the first quarter of 2026 coming from [Strategy]'s bitcoin purchases and concentrated cryptocurrency venture capital funding,” the analysts concluded.