JPMorgan predicts rise in institutional crypto inflows this year

JPMorgan anticipates that capital flowing into the cryptocurrency market will increase this year, led by institutional investors, The Block reported. In a recent report, the investment bank noted that a record $130 billion entered the crypto market last year, an increase of over 30% from the prior year. The bank projects that upcoming regulations—such as the Clarity Act, which would establish a U.S. crypto market structure—will encourage institutions to adopt cryptocurrencies more actively. This is expected to drive more venture capital investment, mergers and acquisitions, and initial public offerings across various sectors, including stablecoin issuers, payment firms, exchanges, wallet services, and blockchain infrastructure. JPMorgan also suggested that this year's inflows are more likely to be driven by institutional investors, in contrast to last year's trend, which was led by companies holding digital assets.