Institutional Traders Show Lukewarm Interest in Crypto, JPMorgan Survey Reveals

• 78% of surveyed traders say no to crypto, reflecting industry turbulence and hesitant sentiment.
• Only 7% see blockchain as a major player, marking a sharp decline from previous years and suggesting a shift in technological priorities.
• AI & Machine Learning Ascend: 61% predict AI as the future of trading, signifying a tech-driven revolution in the financial landscape.

In a recent survey conducted by JPMorgan, findings indicate that 78% of institutional traders, out of over 4,000 participants, have no intention of cryptocurrency trading over the next five years.

This comes after a decline in enthusiasm for the digital currency sector compared to previous years.

Blockchain Fades, AI Rises

Only 7% see blockchain as influential, down from 25% in 2022. Meanwhile, 61% predict AI and machine learning will shape the future of trading.

Traders participating in the survey identified inflation (27%), the U.S. election (20%), and recession risk (18%) as the top three catalysts expected to impact the broader market in the coming year.

Inflation, elections, recession are the major catalysts impacting broader market expectations, according to surveyed traders.

9% are currently in crypto, up from 8% in 2023, with 12% planning to enter within five years.

• JPMorgan CEO Remains Skeptical: Jamie Dimon continues his vocal criticism of crypto, potentially influencing the bank’s overall stance.
• Regulatory uncertainty: Lack of clear regulations surrounding crypto might deter broader adoption.

Financial Gaints Sparking a Gradual Crypto Sector Recovery

Entry of major players like BlackRock and recent ETF approvals suggest a gradual sector recovery. Notably, the approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January marked a crucial milestone for institutional investors.

Financial giants like BlackRock, Fidelity, and WisdomTree obtaining approval coincided with a nearly 95% rise in the price of Bitcoin over the last twelve months, according to TradingView data.

Future Outlook

Increased involvement of large players like BlackRock and recent ETF approvals signal potential for cautious growth.

Despite some positive signs, widespread adoption among institutional traders might remain slow due to lingering concerns.