The cryptocurrency market began the week with gains as JPMorgan, following other Wall Street giants, is considering launching cryptocurrency trading services for institutional clients.
On Monday, December 22, the total crypto market capitalization increased by almost 2% to $3.04 trillion. Bitcoin rose by 2% and is holding near the $90,000 level, having traded above it during the day. Ethereum’s price remains above the psychological $3,000 mark, gaining 2.5% over the day.
Other major cryptocurrencies also showed moderate growth, while the Audiera token—the web-based cryptocurrency linked to the legendary music-dance game Audience (Audition), which has over 600 million users worldwide—jumped 34% to $4.2 as users seek new AI-powered gaming experiences.
According to Cryptonews, the positive momentum in the crypto market was driven by a report from JPMorgan Chase, the largest U.S. bank, which plans to begin crypto trading, following other Wall Street institutions such as Standard Chartered, Vanguard, and BlackRock.
Reaction to client demand and competitor activity
Bloomberg reports that JPMorgan, whose banking and asset-management units hold more than $8.2 trillion in assets, is considering offering institutional investors access to cryptocurrency trading. The products under review include spot trading and derivatives, markets currently dominated by companies such as Coinbase, Kraken, Aster, and Robinhood.
Bloomberg notes that these initiatives are being driven by strong institutional demand for access via JPMorgan’s platform. Vanguard, which had resisted the crypto industry for years, recently began offering crypto ETFs to its clients, while Charles Schwab plans to launch cryptocurrency trading and investment solutions in January.
SoFi, another major player popular among younger users, is also testing cryptocurrency trading ahead of its relaunch in the first quarter of the year. Other companies providing such services include Standard Chartered, Intesa Sanpaolo, and Goldman Sachs. BlackRock, the world’s largest asset manager, has already become the leading provider of crypto ETFs.
JPMorgan has also been active in blockchain development for some time, and last week launched its first tokenized money market fund, the My OnChain Net Yield Fund, on Ethereum.
Another factor supporting the market is traders’ expectations of a traditional Christmas rally. Ahead of the holiday season, total open interest rose 3% to $131 billion, while short positions surged 75% to over $197 million.
