Catenaa, Monday, July 28, 2025-Capital inflows into digital assets have climbed to $60 billion so far this year, a 50% increase since May, according to JPMorgan analysts.
The surge comes as U.S. lawmakers advance crypto-friendly legislation and investor appetite grows across both public and private markets.
In a note published Thursday, analysts led by Nikolaos Panigirtzoglou attributed the inflows to momentum from recent regulatory moves, including the passage of the GENIUS Act and progress on the CLARITY Act.
These efforts have begun to clarify the status of stablecoins and digital asset classifications, creating what JPMorgan called a more favorable environment for investors.
The GENIUS Act, passed earlier this year, establishes guidelines for stablecoin operations and is viewed by analysts as a potential global benchmark.
The CLARITY Act, still moving through Congress, would classify digital assets as either securities or commodities — a move that could attract more crypto firms to the U.S. over jurisdictions governed by Europe’s MiCA regulation.
Private and public crypto markets are already responding. Venture capital funding in the crypto sector has rebounded, while public markets have seen a spike in activity-notably Circle’s recent IPO and increased SEC filings from other crypto-native firms.
Ethereum, in particular, is benefiting from heightened institutional interest due to its dominance in decentralized finance and adoption in corporate treasuries. Asset managers are also exploring altcoin-based ETFs with staking features, JPMorgan noted.
Digital assets and hedge funds are pulling in capital at a faster clip than traditional alternatives like private equity and credit, underscoring a broader shift in investor focus.
