According to analysts at JPMorgan, crypto-focused exchange-traded funds (ETFs), particularly for Bitcoin (BTC), are expected to see inflows in 2026 that will far exceed those from 2025. Led by Nikolaos Panigirtzoglou, the analysis highlights a significant trend where capital flowing into the crypto market through ETFs reached a record high of $130 billion last year, driven by a growing interest in digital asset treasuries (DATs). DAT Companies Lead Crypto Inflows In 2025 Panigirtzoglou explained that the inflows observed in 2025 were largely attributed to Bitcoin and Ethereum (ETH) ETFs, which the analyst suggests were primarily fueled by retail investors, as well as Bitcoin acquisitions by DAT companies. In contrast, participation from institutional investors and hedge funds, as indicated by the buying activity in Bitcoin and Ethereum Chicago Mercantile Exchange (CME) futures, appeared to have declined compared to 2024. Related Reading: Zcash Foundation Investigation Closed: SEC Decision Sparks 12% Jump In ZEC Price The analysts noted that over half of the total digital asset inflows in 2025, approximately $68 billion, came from DAT companies. Another $23 billion was attributed to formal strategies, marking a slight increase from $22 billion in Bitcoin buying from the previous year. Notably, other DATs acquired about $45 billion in digital assets, a significant rise from just $8 billion in 2024. However, most of these purchases occurred earlier in the year, and by October, the momentum in crypto buying from DATs had markedly decreased. Crypto venture capital funding also contributed to the overall capital flows, though this area remained substantially lower than the peaks experienced in 2021 and 2022. While total crypto venture capital funding saw a modest increase in 2025 compared to 2024, the number of deals declined sharply, and investment activity became increasingly concentrated in later-stage funding rounds. JPMorgan further suggested that this muted growth in venture funding was, in part, due to the increasing allocation of capital toward DATs. Funds that might have otherwise been directed to early-stage startups were increasingly diverted toward treasury strategies that provide immediate liquidity. Regulatory Changes Anticipated To Boost Institutional Interest Looking forward, the analysts expect a rebound in institutional crypto flows in 2026, which could be spurred by the anticipated passage of additional regulatory measures, such as the Crypto Market Structure Bill (CLARITY Act) in the US. This anticipated legislation is expected to further entrench institutional adoption of digital assets, along with renewed institutional engagement in areas like venture capital funding, mergers and acquisitions, and initial public offerings (IPOs). Related Reading: Crypto Market Bill Draft Criticized For Allowing Continued Developer Prosecution However, the expected markup of this bill has been delayed late on Wednesday, as crypto industry leaders, including the cryptocurrency exchange Coinbase (COIN), have withdrawn their support for the legislation. This is attributed to issues related to key provisions, which the firm’s CEO, Brian Armstrong, has described as making this version “materially worse than the current status quo”. At the time of writing, the market’s leading cryptocurrency, Bitcoin, was trading at $96,050, having recorded gains of 10% over the previous fourteen days, as broader inflows have already returned to the market since the beginning of the year. Featured image from DALL-E, chart from TradingView.com
As the first crypto ETFs targeting Bitcoin (BTC) and Ethereum (ETH) near their second anniversary in the US, Galaxy Digital has made optimistic predictions regarding future inflows, projecting that they will outpace 2025 figures. Institutional Adoption Expected To Skyrocket In its 2026 forecast report, which concentrates on 26 critical areas, the firm anticipates that net inflows into US spot crypto ETFs will exceed $50 billion. This comes on the heels of a successful 2025, which saw net inflows reach $23 billion. Related Reading: Bitcoin Correction Timeline: Analyst Predicts Potential Bottom In October 2026 Galaxy Digital believes that as institutional adoption continues to grow, these figures will accelerate in 2026. Wirehouses lifting restrictions on advisor recommendations and Vanguard introducing crypto funds, are expected to facilitate this. BTC and ETH exchange-traded funds alone are forecasted to surpass their 2025 inflow levels. In addition to Bitcoin and Ethereum, Galaxy Digital reports an anticipated wave of new crypto ETFs, particularly in the spot altcoin products. Galaxy Digital Forecasts Over 100 New Crypto ETFs The firm estimates that over 50 spot altcoin exchange-traded funds, along with another 50 crypto ETFs that do not focus on single coins, will debut in the US. Following the US Securities and Exchange Commission’s recent approval of generic listing standards, the number of spot altcoin ETF launches is expected to gain momentum in 2026. In 2025, more than 15 spot crypto ETFs were launched for various altcoins, including Solana (SOL), XRP, Hedera (HBAR), Dogecoin (DOE), Litecoin (LTC), and Chainlink (LINK). Galaxy Digital anticipates that notable assets yet to file their spot ETFs will soon follow suit, and in addition to single-asset products, the market is also likely to see the introduction of multi-asset ETFs and leveraged crypto ETFs. Over 290 Crypto Companies Ready For US IPO Beyond Crypto ETFs, Galaxy Digital also predicts that more than 15 cryptocurrency companies will pursue initial public offerings (IPOs) or uplist in the US. Over the past year, 10 crypto-related firms, including Galaxy itself, successfully went public or uplisted. Related Reading: Ethereum Fails To Surpass $3,000: Predictions For The Final Days Of The Year The firm notes that more than 290 crypto and blockchain companies have completed significant private funding rounds since 2018, positioning them to seek US listings as regulatory conditions improve. Among the companies believed to be potential candidates for initial public offerings or uplisting in 2026 are CoinShares, BitGo (which has already filed), Chainalysis, and FalconX. At the time of writing, Bitcoin is trading at $87,480, which is a 30% retracement from the all-time highs reached in October, and a 3% drop over the past month. Similarly, the gap between Ethereum’s current trading levels of $2,930 and its all-time highs is 40%, with a 3% drop over the past 30 days. Featured image from DALL-E, chart from TradingView.com