78% Of Institutional Traders Not Considering Cryptocurrency Trading Over Next 5 Years: JPMorgan Survey

In a recent survey conducted by JPMorgan, a significant majority of institutional traders have indicated their disinterest in trading cryptocurrencies over the next five years.

What Happened: The survey, which was part of the bank’s 2024 e-Trading annual survey, revealed that 78% of institutional traders are not planning to engage in cryptocurrency trading in the foreseeable future, reported CoinDesk on Friday.

Despite the lack of enthusiasm for cryptocurrencies, a small group of traders view blockchain/distributed ledger technology (DLT) as the most influential technology in shaping the future of trading over the next three years.

AI and machine learning, on the other hand, are predicted to have the most significant impact on trading over the next three years, according to 61% of the participants. This percentage is an increase from 53% last year.

Blockchain technology, which was considered more influential in 2022, has seen a decline in interest, dropping to 7% in 2024 from 25% in 2022.

Despite the overall lack of interest, there has been a slight increase in the number of active institutional traders in the digital currency sector, with 9% of participants currently trading crypto, up from 8% in 2023. Additionally, 12% of the traders plan to trade crypto within the next five years.

One possible reason for this increase could be the entry of large financial institutions into the digital currency sector, leading to a gradual recovery for the industry. The approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January, a significant milestone for institutional investors, has also contributed to this recovery.

Why It Matters: The lack of interest in cryptocurrencies among institutional traders is a significant shift from the trend observed in 2023. Last year, institutional investors were increasingly allocating a larger portion of their portfolios to Bitcoin BTC/USD and Ethereum ETH/USD, indicating a growing interest in the crypto market.

The current disinterest in cryptocurrencies and the increasing focus on AI and machine learning could signal a shift in the priorities of institutional traders and the future of the trading sector.