Analysts see JPMorgan’s crypto push benefiting competitors including Coinbase and Bullish

JPMorgan’s reported plans to offer crypto trading to institutional clients could change the industry’s competitive dynamics, but analysts say the move is more likely to bolster established crypto platforms than threaten them.

Market participants argue that entry by the Wall Street giant would further legitimize digital assets and widen institutional distribution, potentially benefiting firms such as Coinbase, Bullish and Galaxy Digital.

“If JPMorgan launches institutional crypto trading, it would be a clear positive for the ecosystem,” said Owen Lau, an analyst at ClearStreet. “It would validate the asset class and expand access. That momentum would likely spread to other banks, with Coinbase and Bullish well positioned to aggregate and execute institutional flow coming through those channels.”

Lau said JPMorgan would likely act as a broker rather than a primary liquidity venue, relying on crypto exchanges to match orders. That approach could place institutional platforms like Coinbase Prime and Bullish at the center of execution and settlement.

Still, deeper Wall Street involvement is expected to raise competitive pressure. In a recent research note, Compass Point analyst Ed Engel wrote that while institutional participation expands the addressable market for digital assets, it could compress margins, particularly for lower-touch services such as spot trading.

Engel said rising institutional activity should lift volumes across spot and derivatives markets and increase demand for lending and custody — segments where crypto-native firms already have established infrastructure. He identified Galaxy Digital as a potential standout due to its focus on principal trading, derivatives and high-touch prime brokerage, while Bullish could benefit from its low-fee spot trading offering.

Overall, analysts suggest JPMorgan’s potential entry would draw more traditional institutions into crypto without displacing incumbent platforms. Instead, it could embed crypto-native firms more deeply into institutional market plumbing — from trade execution to custody and risk management.

In practice, that could see institutional investors route crypto trades through a traditional bank like JPMorgan, only for execution to occur on platforms such as Coinbase Prime or Bullish. As banks funnel more demand into the market, those venues stand to capture additional liquidity.

JPMorgan has not confirmed plans to launch institutional crypto trading, but its expanding engagement with digital assets — including stablecoin initiatives and blockchain-based settlement efforts — suggests such a move is increasingly likely.