Digital Asset Flows Plummet to $11B in Q1 Amid Weakening Institutional Demand

Total digital asset flows in Q1 of 2026 reached an estimated $11 billion, according to JPMorgan's report. This is roughly one-third of what was recorded during the same period in 2025.

The report, led by Managing Director Nikolaos Panigirtzoglou, estimates that at the current pace, flows would annualize to about $44 billion for the full year, which is significantly below the record $130 billion set in 2025.

Corporate treasury purchases and crypto venture capital were the primary drivers of Q1 inflows. However, retail and institutional investor flows were either small or negative during the quarter. Spot Bitcoin and Ethereum ETFs saw outflows, with most of that activity concentrated in January.

CME futures positioning weakened compared to both 2024 and 2025, indicating a decline in institutional demand through derivatives markets. Strategy funded its Bitcoin purchases primarily through equity issuance, while smaller companies moved in the opposite direction by selling Bitcoin holdings to fund buybacks.