Crypto Inflows Hit $60B in 2024, Outpacing Private Markets Amid Regulatory Tailwinds: JPMorgan
Digital assets are seeing unprecedented levels of institutional capital inflows this year, with $60 billion allocated to the space year-to-date, according to a new report from JPMorgan. The figure reflects a nearly 50% increase since the firm’s last estimate in May and highlights growing momentum in crypto relative to traditional private investments.
The bank attributes the surge to a more favorable regulatory environment in the U.S., which has helped revive investor confidence across both public and private sectors of the crypto market.
Regulatory Shift Spurs Institutional Activity
JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, pointed to recent legislative progress—particularly the GENIUS Act—as a key driver. The law introduced clear standards for U.S. dollar-backed stablecoins, offering regulatory certainty that has catalyzed institutional flows and sparked global responses.
China continues to advance its central bank digital currency (CBDC) rollout, while Hong Kong is reportedly developing a yuan-pegged stablecoin in response to the U.S. framework. Meanwhile, the CLARITY Act—still under consideration in Congress—could provide long-awaited legal definitions for digital assets, positioning the U.S. as a more competitive jurisdiction compared to the EU’s MiCA regime.
Crypto VC and Public Market Interest Rebound
The report notes that crypto venture funding is showing signs of recovery, alongside renewed interest in public markets. Circle’s recent IPO and a rise in SEC filings from blockchain-focused firms reflect this shift.
Ethereum (ETH), long viewed as a key layer in decentralized finance (DeFi), is emerging as a preferred asset among institutions. JPMorgan notes that ETH is increasingly being held on corporate balance sheets, joining bitcoin in broader treasury strategies.
In addition, several asset managers are exploring new altcoin-linked ETFs, some incorporating staking mechanisms—a sign of rising demand for diversified digital asset products beyond bitcoin, which recently traded above $119,000.
Traditional Private Markets Lag Behind
While crypto accelerates, inflows to private equity and private credit have slowed notably this year. JPMorgan’s report suggests that investors are reallocating capital to crypto amid clearer regulation, growing liquidity, and attractive return potential.
With digital asset markets benefiting from policy support, strong venture activity, and expanding institutional infrastructure, the bank expects the asset class to maintain its lead over traditional private markets throughout 2024.
