JPMorgan Sees Rising Institutional Crypto Adoption Amid Bullish IPO and Regulatory Clarity

Institutional adoption of cryptocurrency remains in its early stages, but momentum is accelerating, according to a recent report from JPMorgan. Analysts led by Kenneth Worthington highlighted that Bullish’s (BLSH) August IPO and the passage of the GENIUS Act have drawn fresh attention to the digital asset sector. The new regulatory framework is easing long-standing concerns for large investors, removing one of the key barriers to entry. Bullish, which owns CoinDesk, has quickly become a focal point for institutions exploring crypto markets.

Signs of deeper engagement are already visible. The Chicago Mercantile Exchange recently recorded record institutional open interest in crypto derivatives. Meanwhile, institutions now account for roughly 25% of bitcoin exchange-traded products (ETPs). A recent EY survey also revealed that 85% of firms either already allocate to digital assets or plan to do so in 2025, with regulation cited as the leading driver.

Ethereum (ETH) and Solana (SOL) remain the most prominent plays for institutional investors, JPMorgan noted. Ether, the backbone of stablecoin transactions, has rallied nearly 20% since the GENIUS Act was approved. Solana has gained 17% over the same period, reinforcing its growing role in blockchain ecosystems.

In equity markets, Bullish has become an institutional proxy for digital assets. Since its IPO, the stock has surged 45%, reflecting strong investor demand. Analysts added that further upside could follow if the exchange secures a BitLicense later this year.

Despite the growth, JPMorgan maintains a neutral rating on Bullish shares, setting a $50 price target. Shares traded modestly higher on Wednesday at $54.50, underscoring both optimism and cautious sentiment in the evolving crypto landscape.