More than $400 billion in institutional capital will flow into Bitcoin by the end of 2026

2025 is expected to witness more than $120 billion in institutional flows into Bitcoin. The figure is expected to soar to $300 billion in 2026.

Institutions are expected to allocate more than $400 billion in capital to Bitcoin by the end of 2026, UTXO Management and Bitwise Asset Management predicted in a recent report.

Aimed at diversifying government treasury assets, capital outflows from institutions into Bitcoin are expected to begin in earnest this year, with more than $120 billion in institutional flows to be seen in 2025. The figure is expected to soar to $300 billion in 2026.

The investment should accumulate more than 4.2 million BTC during the period, the report says.

With President Donald Trump already announcing the establishment of a strategic Bitcoin reserve in March, there are state bills also that aim to convert seized Bitcoin into a treasury asset. More than 20 states, including New Hampshire and Arizona, are already exploring this possibility.

Once legislated, these bills could invite capital worth $19 billion into Bitcoin.

At least five states in the U.S. and four other countries, such as Bhutan, are expected to factor in Bitcoin into their treasury strategy, according to the report.

Bitcoin treasury companies such as Strategy (Nasdaq: MSTR) are set to acquire over 1 million BTC by the end of 2026. In fact, the number of such public companies is expected to more than double by then as geopolitical instability, fiat devaluation, and inflationary pressures rise.

Such treasury companies are expected to adopt Bitcoin-native yield strategies, such as lending, staking, etc., by 2026 to attract more investment.

“We’re entering a new era of Bitcoin adoption—one that is not driven by hype cycles, but by balance sheet fundamentals, sovereign strategy, and long-term fiduciary mandates,” UTXO Management's research lead Guillaume Girard said.

"Over the next 18 months, bitcoin is set to cement its role as a global store of value," Bitwise Asset Management's senior investment strategist Juan Leon said.