JPMorgan: 78% of institutions do not plan to conduct crypto trading

Only 7% of respondents mentioned the significant impact of blockchain technology on trading

09.02.2024 - 12:45

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3 min

What’s new? According to a JPMorgan survey, only 9% of investors are currently trading cryptocurrencies, with another 12% planning to start trading within the next five years. The vast majority (78%) have no plans to enter the digital asset market. The survey was conducted among 4010 institutional traders in 65 countries. Compared to last year, the share of those investing increased by 1%, while the share of those who do not intend to enter the crypto market increased by 6%.

JPMorgan’s report

What else is known? Respondents also shared their opinions on which technologies will be the most influential in trading over the next three years. 61% of respondents singled out artificial intelligence and machine learning, up 8% from last year.

At the same time, only 7% of traders named blockchain technology: its popularity has fallen by 5% over the year. Back in 2022, it was named the most influential industry by 25% of respondents.

The survey participants also told what they think will have the strongest impact on the market this year. Among the events and factors mentioned were inflation (27%), US elections (20%), recession risk (18%), geopolitical conflicts, and shifts in market processes and the economy (14% each).

Market volatility (28%), lack of liquidity (24%), and inefficient workflows (13%) were cited as the biggest challenges to trading this year.

Earlier this month, analysts at JPMorgan said that the growing dominance of USDT is negatively impacting the stablecoin sector and the crypto ecosystem as a whole, as the asset is opaque and subject to regulatory risks.

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Later, the Coinbase exchange said that by using blockchain, consumers in the US could save $74 billion on bank card fees. According to the survey, 70% of citizens would like to revamp the financial system and make it cheaper, faster, and more accessible.

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