JPMorgan Reports $60 Billion YTD Crypto Inflows, Outpacing PE Markets

JPMorgan: Digital Asset Inflows Surge to $60B in 2024 as U.S. Regulation Turns More Favorable

Capital continues to flow into crypto markets at a record pace this year, with total digital asset inflows reaching $60 billion year-to-date, according to JPMorgan. The bank’s latest report highlights that digital assets have now overtaken private equity and private credit in net inflows, underscoring renewed institutional interest.

This marks a nearly 50% increase since the firm’s previous update in May, with inflow estimates including crypto funds, CME futures positioning, and venture capital investments.

Policy Shifts Driving Market Confidence

JPMorgan analysts, led by Nikolaos Panigirtzoglou, credit the surge to improving regulatory clarity in the United States. In particular, the passage of the GENIUS Act has provided clear guidelines for U.S. dollar-backed stablecoins, setting a global benchmark and triggering regulatory responses in other regions.

China continues to advance its digital yuan rollout, and Hong Kong is reportedly developing a yuan-pegged stablecoin. In the U.S., the proposed CLARITY Act—which aims to define whether digital assets are securities or commodities—could further enhance the country’s appeal for crypto-native firms relative to the EU’s MiCA framework.

Institutional Interest Rises Across Sectors

The more constructive regulatory tone has helped revive activity across both public and private crypto markets. Venture funding is gaining momentum again, while interest in public offerings has returned, following Circle’s IPO and a series of new SEC filings.

Ethereum (ETH), in particular, is seeing growing institutional allocations, thanks to its foundational role in DeFi and smart contracts. According to JPMorgan, ETH is now joining bitcoin in corporate treasury strategies. At the same time, asset managers are exploring altcoin-based ETFs—some offering staking features—highlighting a shift toward broader crypto exposure.

Digital Assets Overtake Traditional Alternatives

In contrast to crypto’s rally, private equity and private credit markets have seen declining capital inflows so far in 2024. The report suggests that regulatory improvements, coupled with higher growth prospects and expanding institutional products, are making crypto an increasingly attractive alternative.

“Improved clarity on U.S. regulations appears to be a key factor behind the acceleration in capital flows to digital assets,” the report concluded.