Survey by JPMorgan Reveals That 78% of Institutional Traders Are Not Planning to Trade Cryptocurrencies
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Despite initial enthusiasm surrounding the debut of the United States’ inaugural Bitcoin (
BTC
) ETFs as a gateway for widespread institutional engagement, a recent
report by JPMorgan
suggests that a significant portion of institutional investors remain uninterested in allocating resources towards cryptocurrencies.
During their latest e-trading survey, the bank interviewed upwards of 4,000 institutional traders. It revealed that a mere 12% plan to trade cryptocurrencies within the next five years, with a staggering 78% stating they have no current plans to engage with the asset class.
This marks a downturn in sentiment when compared to prior years’ projections, which indicated a higher potential for cryptocurrency adoption, with 72% of 2023 respondents having had no plans to trade digital assets.
Despite blockchain’s previously perceived potential, the survey disclosed that 61% now believe artificial intelligence and machine learning will have a more significant impact on shaping the future of trading. This reflects an 8% increase in perceived importance from the previous year, while blockchain’s importance has diminished from 12% to 7% in 2024.
Notably, the percentage of traders actively participating in the cryptocurrency market has increased slightly from 8% in 2023 to 9% who confirm they are “currently trading crypto/digital coins” today.
As for major market influencers in 2024, 27% of traders believe inflation will be the predominant force, followed by the anticipation surrounding the U.S. election at 20%, and the risks of a recession, which saw reduced concern from 30% in 2023 to 18%.
Traders also forecast that 2024 will be characterized by market volatility, with worries about market fluidity and efficiency following closely behind. Trends show liquidity concerns increasing in importance, as evidenced by the rise from a 22% to a 24% ranking in this area for the coming year.
Structural market concerns for 2024, such as liquidity access, regulatory shifts, and the cost and acquisition of market data, remain high on the list of trader apprehensions. When delving into product-specific data, those trading equity derivatives or commodities cited regulatory changes as their chief concern.
Disclaimer:
The opinions expressed in this piece are solely those of the writer and may not mirror the views of Kitco Metals Inc. The writer has undertaken diligent measures to verify the information’s accuracy; however, neither Kitco Metals Inc. nor the author can provide an absolute assurance of accuracy. This content serves informative purposes exclusively and should not be construed as an encouragement to engage in trading commodity, securities, or other financial instruments. Both Kitco Metals Inc. and the article’s author decline any liability for loss and/or damage resulting from the use of this publication.
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