Crypto flows slow, policy review surfaces

The money is still coming into crypto, but it is coming through a much narrower door than it did a year ago. JPMorgan estimated first-quarter digital asset inflows at about $11 billion, roughly one-third of the same quarter in 2025. (theblock.co) That $11 billion was not broad enthusiasm from everyday traders or big institutions piling in at once. JPMorgan said most of the quarter’s inflows came from corporate treasury Bitcoin buying and crypto venture capital funding instead. (theblock.co) One company sat at the center of that picture. JPMorgan said Michael Saylor’s Strategy was a major source of corporate Bitcoin purchases in the quarter, while smaller companies in some cases sold holdings to fund buybacks. (theblock.co) Another sign of thinner demand showed up in the derivatives market, which is where investors use futures contracts like reservations on a future price. JPMorgan said Chicago Mercantile Exchange futures positioning weakened in the first quarter, pointing to negative institutional demand so far in 2026. (coinmarketcap.com) The exchange-traded funds told a similar story, but in a more visible way because they trade on stock exchanges all day. U.S. spot Bitcoin exchange-traded funds posted about $94 million of net outflows on April 8 even after Morgan Stanley’s new fund took in about $31 million, which The Block said looked like institutions taking profits after the rally. (theblock.co) Even the miners, which are the companies that earn new Bitcoin by running specialized computers, were not acting like strong hands in the quarter. JPMorgan said listed mining firms became net sellers, often to raise liquidity, fund capital spending, or manage debt. (theblock.co) At the same time, Washington is preparing a rule package that could make it easier for new crypto projects to get off the ground. Securities and Exchange Commission Chair Paul Atkins said the agency’s “Regulation Crypto Assets” proposal is now at the Office of Information and Regulatory Affairs, the White House office that reviews major rules before publication. (cointelegraph.com, (reginfo.gov)) Atkins has been signaling this direction for months. In September 2025, he said the Securities and Exchange Commission’s agenda would include crypto asset offer-and-sale rules aimed at giving the market “greater certainty” and simplifying capital-raising pathways. (sec.gov) The new package is built around three ideas, according to Atkins’ latest remarks: a startup exemption, a fundraising exemption, and an investment contract safe harbor. In plain terms, that means some projects could get a temporary runway to launch and raise money before facing the full weight of securities registration. (cointelegraph.com, (sec.gov)) So the market is sending one message while regulators may be preparing another. Capital in early 2026 has been concentrated in Bitcoin buyers and a smaller set of venture deals, while the Securities and Exchange Commission is moving toward rules that could widen the funnel for future crypto fundraising. (theblock.co, (cointelegraph.com))