The crypto market is buzzing with activity as of May 20, 2025, with US-based crypto funds recording $7.5 billion in inflows this year, JPMorgan Chase allowing clients to purchase Bitcoin despite not offering custody, and the SEC postponing decisions on Solana ETFs. These developments reflect the growing mainstream acceptance of digital assets amid a shifting regulatory landscape.
US Crypto Funds See $7.5 Billion in Inflows Amid Rising Demand
US crypto investment products have attracted $7.5 billion in inflows in 2025, with a CoinShares report noting $785 million in net inflows last week alone, including $681 million from the US. This marks the fifth consecutive week of positive flows, reversing earlier outflows from February and March.
Contributions also came from Germany ($86.3 million) and Hong Kong ($24.4 million). A 90-day pause on US-China tariffs has eased investor concerns, potentially fueling this surge.
Data highlights Coinbase’s record $1 billion in Bitcoin withdrawals in a single day, the highest net outflow of 2025, signaling strong institutional interest, as noted by Bitwise’s André Dragosch.
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JPMorgan Shifts Stance: Bitcoin Purchases Allowed, No Custody Offered
JPMorgan Chase CEO Jamie Dimon, a known crypto skeptic, confirmed during the bank’s investor day that clients can now buy Bitcoin, though the bank will not provide custody services.
Dimon downplayed blockchain’s impact compared to technologies like AI, despite the bank’s internal blockchain use. This policy shift aligns with evolving government policies under President Donald Trump, with Federal Reserve Chair Jerome Powell stating banks can serve crypto clients if risk management is robust.
Sources reflect mixed sentiment, with some viewing the move as a validation of crypto’s mainstream status, while others question Dimon’s reluctance to fully embrace digital assets.
Did You Know?
Coinbase’s $1 billion Bitcoin withdrawal in a single day in 2025 marked the largest net outflow this year, reflecting a surge in institutional interest in digital assets.
SEC Delays Solana ETF Decisions, Seeks Public Input
The U.S. Securities and Exchange Commission (SEC) has deferred decisions on Solana ETFs proposed by 21Shares and Bitwise, opening a public comment period.
This move is part of the SEC’s broader review of crypto ETF applications, including those for Solana, XRP, and Dogecoin, with firms like Canary, Grayscale, and ProShares also in the queue.
The regulatory environment is improving, with the SEC approving Bitcoin and Ethereum spot ETFs in 2025 and reducing enforcement actions against crypto firms.
SEC Chair Paul Atkins, in a recent roundtable, proposed a new regulatory framework, critiquing past policies. However, JPMorgan analysts predict Solana and XRP ETFs could attract $3 billion to $8 billion each if approved.
Broader Crypto Market Context
The crypto market is witnessing dynamic shifts. Data shows Bitcoin trading at $102,615, up 20.3% over the past month, per CoinMarketCap, while Strategy (formerly MicroStrategy) added 7,390 BTC for $764.9 million last week, despite facing a class-action lawsuit.
Ripple launched cross-border payments in the UAE, and the US Senate advanced the GENIUS Act for stablecoin regulation on May 19, potentially impacting market stability. These events highlight the sector's swift evolution and the delicate balance between innovation and regulation.
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