JPMorgan has observed a significant drop in capital inflows into crypto assets during the first quarter of 2026, contrary to earlier expectations of growth. This was reported by The Block.

According to analysts at the bank, led by Managing Director Nikolaos Panigirtzoglou, total inflows into digital assets for the three-month period amounted to approximately $11 billion. This figure is roughly three times lower than the same period last year.

If the current trend continues, total inflows for the full year could reach around $44 billion, significantly down from approximately $130 billion in 2025.

Changing Demand Structure and Pressure from Miners

The primary inflow in the first quarter came from corporate Bitcoin purchases and venture investments.

However, activity in the digital asset trading (DAT) segment was mixed. While a limited group of players, led by Strategy, continued to increase their positions, several smaller companies sold their assets to meet obligations and buy back shares.

Analysts noted that the market is increasingly reliant on a small number of large participants rather than broad demand from institutional and retail investors.

Additional signals of cooling during the first quarter included:

  • Outflows from Bitcoin and Ethereum-based ETFs
  • Reduction in positions in CME futures;
  • Institutional demand turning negative.

Nevertheless, analysts pointed out that there was a partial recovery in inflows to exchange-traded BTC funds in March.

A significant factor putting pressure on capital inflows into cryptocurrencies was that mining companies were net sellers of Bitcoin in the first quarter. JPMorgan explained this as a result of tightening financing conditions for cryptocurrency miners and the need to maintain liquidity. In some cases, asset sales were linked to costs associated with diversification into AI services.

The volume of venture funding in the first quarter remained high, with growth rates surpassing those of the previous two years. However, the number of deals and participants decreased, with investor interest focusing on a smaller number of large rounds, the bank's specialists noted.

It is worth mentioning that in March, the activity of retail Bitcoin investors fell to its lowest level since 2017, according to analyst Darkfost.