Survey by JPMorgan Finds That 78% of Institutional Traders Have No Plans to Trade Cryptocurrencies in the Next Five Years

A sizeable majority of institutional traders have signaled a lack of interest in cryptocurrency investments for the next half-decade, according to a recent poll by JPMorgan.

Survey Findings:
78% of the traders participating in JPMorgan’s yearly e-Trading survey for 2024 plan to steer clear of crypto markets in the near future, with details released by CoinDesk last Friday.

While cryptocurrencies may not be the favorite, a niche segment of the market acknowledges blockchain/DLT as a transformative force in trading for the coming three years.

However, the prevalent view is that AI and machine learning will be the biggest game changers in trading, with 61% forecasting their dominance, up from 53% last year.

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Blockchain’s influence, previously more pronounced, has waned, evident from its decrease to 7% in 2024 from a substantial 25% in 2022.

Despite the general aversion, there’s a noticeable uptick in active institutional players in the crypto arena. The figures show a rise to 9% from last year’s 8%, and looking ahead, 12% of traders are eyeing cryptocurrency investments within five years.

The gradual embrace may be attributed to major financial entities entering the cryptocurrency space, which has led to a cautious recovery for the industry—bolstered further by the U.S. approval of Bitcoin ETFs that commenced this January.

Why This Matters:
The shift in sentiment from institutional investors reveals a transition from the previous frenzy around cryptos like Bitcoin and Ethereum. The focus has imperceptibly shifted towards AI and machine learning technologies, signalling a possible redirection in trading strategies.

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