BroadChain has learned that JPMorgan released a report on April 8, revealing total digital asset inflows of approximately $11 billion for Q1 2026. On an annualized basis, this equates to roughly $44 billion—about one-third of the level recorded during the same period in 2025.
Analysts Nikolaos Panigirtzoglou and others at JPMorgan pointed out that inflows from both retail and institutional investors were subdued or even negative. The primary drivers of Q1 inflows were purchases by Strategy and concentrated funding within the crypto venture capital space.
The broader cryptocurrency market faced a downturn in Q1 2026, with total market capitalization dropping by around 20%. Bitcoin declined approximately 23%, while ETH fell more than 30%. This sell-off was largely attributed to macroeconomic and geopolitical pressures, with altcoins experiencing even sharper declines. Toward the end of the quarter, prices began to stabilize, with Bitcoin consolidating near the $70,000 level.
According to the report, CME futures positioning for both Bitcoin and Ethereum weakened compared to 2024 and 2025. Meanwhile, spot Bitcoin and Ethereum ETFs recorded net outflows during Q1—concentrated mainly in January—though Bitcoin ETF flows showed some recovery in March.
Strategy remained the dominant buyer, funding most of its Bitcoin acquisitions through equity issuance. Other corporate holders adopted a more conservative approach, with some selling Bitcoin to finance share buybacks. Bitcoin miners were net sellers throughout the quarter.
Crypto venture funding continued at an annualized pace exceeding that of the previous two years, though it remained concentrated in a handful of large deals. Capital continued to flow into sectors such as infrastructure, stablecoins, payments, and tokenization.