Wall Street investment bank JPMorgan (JPM) said the pace of capital flow into digital assets slowed noticeably in the first quarter of 2026, with total inflows estimated at around $11 billion.
That implies an annualized run rate of about $44 billion, about a third of the pace seen in 2025, according to the report released last week.
“Investor flows, whether retail or institutional, have been small or even negative to date and most of the digital asset flow in Q1 26 came from Strategy bitcoin (MSTR). purchases and concentrated crypto VC financing,” wrote analysts led by Nikolaos Panigirtzoglou.
Crypto markets had a volatile and largely negative first quarter, with prices and market value falling sharply in a context of risk aversion. The total cryptocurrency market capitalization fell by about 20% during the period, while bitcoin fell by about 23% and ether (ETH) declined by more than 30%, marking one of the weakest first-quarter performances in years.
The sell-off was driven by macroeconomic and geopolitical pressures, leading to sell-offs and a broad pullback in risk assets, with altcoins hit even harder.
Despite the slowdown, prices stabilized towards the end of the quarter, with bitcoin consolidating near the $70,000 level as ETF demand improved and some market sectors, such as some altcoins and on-chain activity, showed resilience.
The bank’s estimate adds crypto fund flows, Chicago Mercantile Exchange (CME) futures positioning, venture capital fundraising, and corporate treasury activity, including bitcoin. purchases by companies like Strategy.
Analysts said investor-driven flows were notably weak. CME bitcoin and ether futures positioning softened compared to 2024 and 2025, suggesting institutional demand may have turned slightly negative so far this year. Bitcoin and ether spot exchange-traded funds (ETFs) also saw net outflows during the quarter, concentrated in January, before a modest rebound in bitcoin ETF inflows in March.
The bank’s analysts attributed most of the quarter’s inflows to corporate treasury activity and venture financing. Strategy remained a dominant buyer, funding bitcoin purchases largely through equity issuance, while indicating a continued reliance on equity and preferred issuance to finance accumulation. Other corporate holders were more defensive, with some selling bitcoin to fund buybacks.
Bitcoin miners were net sellers during the quarter, according to the report, as companies sold holdings or used them as collateral to shore up liquidity, fund capital expenditures or manage liabilities. Analysts characterized the sale as driven by tighter financing conditions and balance sheet discipline rather than headwinds.
Crypto venture capital was a relative bright spot. Financing continued at a higher annualized pace than the previous two years, although activity became increasingly focused on fewer, larger deals led by established companies. Capital continued to shift towards infrastructure, stablecoins, payments and tokenization, with less interest in gaming, non-fungible tokens (NFTs) and exchange-related projects, the report added.
Read more: Bitcoin Holds Steady as Gold, Silver Fall on ETF Outflows, Liquidity Strains: JPMorgan
