JPMorgan: Crypto Inflows Hit $60B YTD, Surpassing Private Equity as U.S. Regulation Turns Supportive
Regulatory Clarity in Washington Sparks Record Digital Asset Investment Surge
Crypto markets are experiencing a dramatic resurgence in capital inflows, with $60 billion pouring into digital assets so far in 2024, according to a new report from JPMorgan. That marks a nearly 50% increase since the firm’s last update in May—and positions the asset class well ahead of private equity and private credit in terms of capital raised year-to-date.
The figure reflects a mix of spot fund flows, CME futures activity, and venture capital deals across the digital asset ecosystem. According to JPMorgan analysts, the rally in inflows is being driven by a notably more favorable regulatory landscape in the U.S.
Policy Shifts Reshape the Crypto Landscape
“Much of the capital surge appears tied to the improving regulatory tone in the U.S.,” analysts led by Nikolaos Panigirtzoglou wrote. They point to the passage of the GENIUS Act as a major turning point—establishing long-awaited rules around U.S. dollar-backed stablecoins and setting a precedent that’s already influencing global policy responses.
China continues to advance its digital yuan rollout, while Hong Kong is developing a yuan-pegged stablecoin in response to the GENIUS Act’s framework. Meanwhile, the CLARITY Act—currently under review in Congress—seeks to define whether digital assets are securities or commodities. If passed, it could unlock new opportunities for U.S.-based crypto firms and investors, and position the U.S. regulatory regime as more favorable than the EU’s MiCA legislation.
Investor Confidence Returns Across Crypto Sectors
The report highlights that both public and private crypto markets are benefiting. Venture capital interest is rising again after a quiet 2023, and activity in public markets has picked up following Circle’s IPO and a wave of new SEC filings from blockchain-focused firms.
Ethereum (ETH) is attracting renewed attention from institutions, thanks to its integral role in DeFi and smart contracts. JPMorgan notes that ETH is increasingly being added to corporate treasuries alongside bitcoin.
At the same time, institutional demand is broadening into altcoins, with asset managers exploring ETF products that include staking components—signaling a growing appetite for exposure beyond bitcoin, which is currently trading near $119,000.
Traditional Private Markets Lose Momentum
While digital assets surge, traditional alternative investments are falling behind. JPMorgan’s report notes a clear decline in flows to private equity and private credit so far this year, as investors increasingly shift capital toward crypto in search of higher growth potential and regulatory certainty.
With favorable policy developments, deepening institutional participation, and broad-based interest across asset classes, JPMorgan says digital assets are now positioned as one of 2024’s strongest-performing sectors in global capital markets.
