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Institutional Crypto Exposure Retreats as $73B Exits Since October 2025 and Trading Volumes Slide to 2024 Levels
Family Offices Cut Crypto Allocations as Trading Volumes Return to 2024 Levels
TL;DR
- JPMorgan found 89% of surveyed family offices had no crypto exposure, while AI dominated 2026 investment priorities.
- Nomura reduced crypto exposure after losses at its digital-asset unit, while Multicoin Capital co-founder Kyle Samani shifted more attention toward AI and robotics.
- Digital asset investment products lost roughly $73 billion in assets from October 2025 highs.
- Major exchange spot volumes fell from about $2 trillion to $1 trillion, tightening liquidity across crypto markets.
Institutional enthusiasm for crypto has weakened as family offices limit allocations, banks reduce risk and digital-asset investment products lose billions in assets.
JPMorgan's 2026 Global Family Office Report surveyed 333 family offices across more than 30 countries. It found that 89% held no cryptocurrency exposure, while 65% identified artificial intelligence as a priority investment theme.
Average crypto exposure was just 0.4%, including roughly 0.2% in Bitcoin. Meanwhile, 72% reported no gold exposure.
Family Offices Favor AI Over Crypto
Crypto ranked well behind other investment themes.
Among surveyed family offices:
- 65% prioritized AI
- 50% highlighted healthcare innovation
- 41% focused on infrastructure
- 17% named crypto and digital assets as a priority
JPMorgan Global Head of Alternatives Kristin Kallergis Rowland said alternative investments “are no longer a tactical complement but a strategic pillar.”
Institutional views were not uniformly bearish. A separate Coinbase and Glassnode survey of 148 institutional investors found nearly 70% viewed Bitcoin as undervalued, while 62% maintained or increased exposure during recent sell-offs.
Nomura Cuts Crypto Risk
Nomura Holdings also reduced crypto exposure following losses at its digital-asset subsidiary, Laser Digital Holdings, during Q3 2025.
CFO Hiroyuki Moriuchi said the move reflected stronger risk controls rather than abandonment of the firm's long-term digital-asset strategy.
Nomura manages roughly ¥153 trillion in client assets.
For the quarter ended December 31:
- Net income fell 9.7% to ¥91.6 billion
- Overseas profits dropped about 70% to ¥16.3 billion
The reduction highlights how traditional institutions can remain committed to crypto while cutting short-term exposure when market conditions deteriorate.
Multicoin Co-Founder Shifts Focus Toward AI
Multicoin Capital co-founder Kyle Samani also stepped back from his full-time role after more than eight years at the crypto venture firm.
Samani plans to spend more time on artificial intelligence, robotics and longevity research.
He remains connected to crypto through several roles, including serving as chairman of Forward, sitting on Zama's board and supporting Multicoin portfolio companies.
The move adds another example of investor attention shifting toward AI even as long-term crypto exposure remains intact.
Crypto Funds Lose $73 Billion
CoinShares data showed digital-asset investment products had lost approximately $73 billion in assets since crypto prices peaked in October 2025.
Investors withdrew about $1.7 billion, producing roughly $1 billion in net global outflows and erasing year-to-date gains.
Bitcoin products led withdrawals, while short-BTC funds attracted inflows as demand for downside protection increased.
Bitcoin traded near nine-month lows around $78,000, while major altcoins remained near multi-month lows.
Crypto Trading Volumes Fall by Half
Trading activity also contracted sharply.
Spot volume across major centralized exchanges fell from roughly $2 trillion in October 2025 to about $1 trillion by late January and early February 2026.
Bitcoin spot volume on Binance dropped from around $200 billion to $104 billion.
CryptoQuant contributor Darkfost said trading activity had returned to its lowest levels since 2024.
Liquidity tightened further as:
- Stablecoins left exchanges
- Total stablecoin market capitalization fell by an estimated $10 billion
- Bitcoin liquidations reached roughly $2.56 billion during early-February cross-asset selling
Macro Pressure Adds to Crypto Weakness
Market sentiment also faced pressure from expectations for tighter monetary policy, a stronger U.S. dollar and higher real yields following President Donald Trump's nomination of Kevin Warsh for Federal Reserve chair. Warsh had been nominated to succeed Jerome Powell, whose chair term was due to end in May 2026.
Bitcoin briefly dropped below $75,000, about 37% below its October 2025 high.
The broader picture points to declining risk appetite rather than a complete institutional exit from crypto. Family offices remain lightly allocated, some banks are reducing exposure, and trading liquidity has weakened sharply.
Yet other institutional surveys still show investors holding or adding positions during the downturn.
The key shift is therefore not the disappearance of institutional crypto demand, but greater selectivity as capital moves toward AI, liquidity tightens and investors demand stronger risk-adjusted returns from digital assets.
