Federal Reserve Chair Jerome Powell's remarks have affirmed cryptocurrency acceptance in the U.S., prompting an increase in institutional investments in Bitcoin ETFs.
Powell Endorses Crypto's Legitimacy in U.S. Banking
In his testimony on June 24, 2025, Jerome Powell highlighted the recognition of cryptocurrencies within U.S. banking, potentially paving the way for regulated investment. He stated, 'U.S. banks are allowed to offer services to cryptocurrency firms, provided they adhere to appropriate risk management protocols.'
$588 Million Bitcoin ETF Inflow Follows Fed Announcement
Institutional capital surged, with Bitcoin ETF inflows reaching $588 million, signaling confidence in the crypto market's legitimacy. Ethereum also benefited, seeing $71 million in inflows. Powell’s stance reduces perceived reputational risks for banks, enhancing business confidence and potentially increasing fiat integrations with crypto ecosystems.
Past Fed Statements Influence Institutional Crypto Interest
Federal Reserve statements in the past have similarly triggered positive market reactions. Powell's recent comments echo shifts that previously increased institutional crypto holdings. Historical trends suggest sustained institutional interest and adoption, potentially leading to legislative changes such as the GENIUS Act, further stabilizing crypto markets.
Jerome Powell’s remarks underline the growing acceptance of cryptocurrencies in traditional financial systems, fostering increased institutional investments and the potential for further legalization of crypto assets.
