JPMorgan believes that institutional adoption for crypto is still in its “early phases,” the firm said in a Wednesday note. The institution writes that regulatory clarity from the GENIUS Act and positive crypto-related IPOs are reigniting institutional interest around cryptocurrency. According to JPMorgan, institutions now hold around 25% of Bitcoin ETPs, and Ether and Solana are close behind as crypto-favorites.

Analysts led by Kenneth Worthington from JPMorgan believe that the GENIUS Act’s passing helps add regulatory clarity, which was a big obstacle for larger institutional investors to navigate. Now that further transparency by authorities has been granted around crypto, these institutions can dive in and offer crypto-related products to their customers, driving demand for the digital assets.

JPMorgan adds in its report that the Chicago Mercantile Exchange reported record institutional open interest in crypto derivatives recently. Now, institutions hold around a quarter of Bitcoin ETPS, and an EY survey reveals that 85% of firms already allocate to digital assets or plan to in 2025.

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Since the GENIUS Act passed, other coins outside of Bitcoin have been leading the market. Ethereum ETH is up 20% since the passing of the crypto bill, while Solana SOL is up around 17%. JPMorgan’s Jamie Dimon has even become more supportive of institutions getting involved in crypto, despite being one of Bitcoin’s biggest adversaries for years.

Furthermore, JPMorgan is one of the largest banking institutions that has spoken out in favor of the growing stablecoin industry. In a July report, JPMorgan analyst and director Teresa Ho says that she expects stablecoins to be “integrated in traditional finance systems.” The analyst also added that the explosion in crypto and specifically stablecoins will bring “more tokenization of real-world assets.”