Institutional Traders Shun Crypto, JPMorgan Survey Shows
Only 12% of over 4,000 institutional traders interviewed believe they will be trading cryptocurrency in the next five years.
There was a minor increase in the number of institutional traders active in the crypto sector.
Despite the survey results, the spot ETF approval has seen many big-name institutions enter the space, with more likely to come.
JPMorgan’s annual e-trading survey has dashed hopes among the community that Bitcoin’s spot ETF approval would spur renewed institutional interest in the digital currency sector. The survey from the world’s fifth-largest bank focussed on over 4,000 professional traders, asking them various questions on the blockchain industry among other financial topics. The results were not pretty for cryptocurrency, however, there are a few caveats worth discussing.
Less Than 10% of Those Surveyed Believe Blockchain Tech is Important
Perhaps the most telling response was to the question: “In the next three years, which technologies will be most influential for trading?”.
The answer was dominated by artificial intelligence, with over half of surveyees agreeing this sector would play a major role in the future of finance. Blockchain tech, on the other hand, fell from its heights of 25% in 2022, with just 7% of respondents backing the industry.
Source: JPMorgan
Additionally, only about 12% of institutional traders have plans to trade cryptocurrency assets over the next five years, which is quite a low figure considering many are predicting a Bitcoin bull market as the macroeconomic conditions improve over the next 24 months.
There was some positive news though, with a minor uptick in the number of institutional traders active in the crypto sector improving from 8 to 9% through the last year.
Despite the seemingly bearish sentiment, there are several important factors to consider when assessing these results:
Despite the continued entrance of large institutions into crypto, this demographic is still very anti-crypto.
Institutional traders typically manage portfolios on behalf of others and are therefore adverse to risky, volatile markets like crypto.
JPMorgan is staunchly against crypto and blockchain technology, which means they may have been more likely to interview those that align with their beliefs.
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Filed under: Bitcoin - @ February 9, 2024 2:17 am