JPMorgan's Institutional Crypto Trading Initiative Could Boost Rivals Like Coinbase and Bullish, Analysts Say
JPMorgan is reportedly planning to offer crypto trading services to its institutional clients, a move that could legitimize the cryptocurrency sector and broaden access for traditional financial institutions.
This initiative is expected to benefit crypto-native platforms such as Coinbase, Bullish, and Galaxy Digital by expanding institutional order flow and distribution channels.
JPMorgan would likely act as a broker matching orders on various exchanges, enabling settlements through platforms like Coinbase Prime and Bullish.
According to Compass Point analyst Ed Engel, this action increases the addressable market but also raises competition. Galaxy Digital and Bullish stand to gain from higher institutional participation, while Coinbase and Circle may face margin-pressure risks.
As institutional activity grows, volumes in spot and derivatives trading, as well as demand for lending and custody services, could rise, although basic spot trading fees might come under pressure.
Galaxy Digital is considered a leading beneficiary due to its focus on principal trading, derivatives, and high-touch prime brokerage, whereas Bullish could benefit from its low spot fee rates.
The shift toward increased institutional involvement would push traditional institutions deeper into crypto infrastructure such as trading, custody, and risk management, potentially increasing liquidity for platforms like Coinbase Prime and Bullish.
JPMorgan has not officially confirmed the launch yet, but the move seems likely as the bank has previously shown openness to crypto by launching its own stablecoin, JPM Coin, and exploring blockchain settlement tools.
Publication date: December 23, 2025.
