JPMorgan: Strategy is the Main Factor in Bitcoin Fund Inflows

Odaily News JPMorgan released a report stating that the total inflow into digital assets in Q1 2026 was approximately $11 billion, annualized to about $44 billion, which is about one-third of the same period in 2025. Analysts including Nikolaos Panigirtzoglou pointed out that inflows from retail and institutional investors were low or even negative, with the primary inflows in Q1 coming from Strategy's Bitcoin purchases and concentrated crypto venture capital financing.

The overall crypto market declined in Q1, with total market capitalization dropping by about 20%, Bitcoin falling by approximately 23%, and ETH declining by over 30%. The sell-off was driven by macroeconomic and geopolitical pressures, with altcoins experiencing larger declines. Prices stabilized towards the end of the quarter, with Bitcoin consolidating around $70,000.

The report noted that open interest in CME Bitcoin and ETH futures has weakened compared to 2024 and 2025. Spot Bitcoin and ETH ETFs experienced net outflows in Q1, concentrated mainly in January, with Bitcoin ETF inflows recovering somewhat in March. Strategy remained the primary buyer, primarily funding its Bitcoin purchases through equity issuance. Other corporate holders were relatively conservative, with some selling Bitcoin for buybacks. Bitcoin miners were net sellers during the quarter. The annualized pace of crypto venture capital funding was higher than in the previous two years but concentrated in a few large deals, with funds continuing to flow into infrastructure, stablecoins, payments, and tokenization.