Digital asset flows declined significantly in the first quarter of 2026, according to analysts at JPMorgan. Total crypto market inflows were estimated at $11 billion, roughly one third of the level recorded during the same quarter last year.
The slowdown implies an annualized pace of around $44 billion, far below the record $130 billion inflows recorded in 2025. Analysts calculated total flows using combined data from crypto fund movements, futures activity, venture capital funding, and corporate treasury purchases.
Corporate Bitcoin Buying Remains a Key Driver
Much of the first quarter inflow was linked to corporate treasury purchases of Bitcoin, particularly from Strategy. The company continued acquiring Bitcoin using funds raised through equity issuance, while several smaller firms reduced holdings to support share buybacks.
Institutional Demand Weakens as Miners Increase Selling
Institutional positioning through futures on CME Group weakened during the quarter, signaling reduced demand. Spot Bitcoin and Ethereum exchange traded funds also recorded outflows, particularly in January, though Bitcoin ETFs saw modest inflows in March.
At the same time, Bitcoin mining companies became net sellers, using assets as collateral or liquidating holdings to improve liquidity and fund operations, reflecting tighter financing conditions rather than widespread distress.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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