JPMorgan Confirms Early but Growing Institutional Crypto Adoption

JPMorgan reports that institutional adoption of cryptocurrency remains in its early stages but is gaining significant momentum, driven by recent regulatory clarity and market developments. Institutions currently hold about 25% of bitcoin exchange-traded products, while derivatives markets have seen record institutional open interest, signaling growing sophisticated participation. The passage of the GENIUS Act and Bullish's strong IPO performance have further fueled institutional interest, with 85% of firms surveyed by EY either having allocated or planning to allocate to digital assets by 2025. Despite this progress, major financial indexes like the S&P 500 remain cautious, as evidenced by the exclusion of companies heavily invested in crypto treasuries, reflecting ongoing skepticism about the maturity of digital asset holdings. Ethereum and Solana are highlighted as key assets for institutions, with Ether rallying nearly 20% following regulatory advances. Overall, JPMorgan underscores that while institutional crypto adoption is far from mainstream, foundational infrastructure and regulatory frameworks are beginning to align to support broader engagement.