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Institutional Traders Shun Crypto, JPMorgan Survey Shows
- Less than 10% of professional traders believe blockchain tech will be important for trading in the next three years, according to a JPMorgan survey.
- 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.
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.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
