JP Morgan: 78% of institutional traders are not interested in crypto

In what is certainly a significant development for the market as a whole, JP Morgan reported that 78% of institutional traders are not interested in crypto. Indeed, the interesting results come from a 2024 survey whose results have just been shared with the public.

As part of this survey, JP Morgan spoke to more than 4,000 financial market participants. Although the number of companies willing to adopt crypto has increased, many are not interested in exposing their holdings. Additionally, the percentage of traders not looking to trade cryptocurrencies is increasing compared to 2023 figures.

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JP Morgan survey shows institutional traders’ disinterest in crypto


For many digital asset investors, 2024 was expected to be the year of Bitcoin. After 2023, expectations for asset performance in the following year were at an all-time high. As Spot Bitcoin ETFs near approval, many have seen new all-time highs in the future in asset duration. Subsequently, many saw this as a huge advantage for cryptocurrencies as an industry.

However, this has not yet happened. Although there is no denying that the asset has rebounded after a slow start to the year, already surpassing $50,000. Yet the rush to adopt certainly doesn’t seem to be there. This is becoming increasingly clear in a recent survey.

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Indeed, JP Morgan reported that 78% of institutional traders are not interested in crypto. Speaking to over 4,000 financial market participants, the majority had no plans to trade crypto/digital coins. Additionally, the survey shows that only 12% plan to trade digital assets in the next five years.

Alternatively, the report states that 9% of these traders are currently trading cryptocurrencies. This figure represents a 1% increase from last year, when the FTX collapse was in full swing. It appears that the lack of clear regulation in the United States is one of the main reasons why many have avoided this asset.

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The data also shows that no company currently trading digital assets had planned to do so in the next five years. Conversely, when asked about the next big technology that will impact trading, 61% mentioned artificial intelligence. Alternatively, only 7% said it was blockchain technology.

This data is likely the result of a period of uncertainty surrounding cryptocurrencies. The fall of companies like FTX and Terraform Labs certainly does not inspire confidence in new participants. Additionally, regulatory concerns and lawsuits filed by the U.S. Securities and Exchange Commission (SEC) add to the worry.

Additionally, there have been a multitude of hacks related to the security of digital assets. Just last year, $2.61 billion lost due to security breaches. While this is the case for any technology, some public officials have also spoken of this asset class as a haven for criminal activity. People like Elizabeth Warren have not silenced her ongoing crypto crusade.

Only time will tell if the narrative will begin to change. The 11 Spot Bitcoin ETF approvals at the start of the year are certainly a good start. As the industry continues to develop and grow, institutional investment is expected to return. Especially after the rather difficult year leading up to 2024.


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