A recent JPMorgan survey reveals a significant majority of institutional traders have no plans to engage in cryptocurrency trading in the upcoming year.
Survey Results
According to the survey of 4,200 institutional clients worldwide, 71% of respondents have no plans to trade cryptocurrencies in 2025, showing a slight improvement from the previous year's 78%. Only 16% indicated an intention to trade crypto this year, while 13% are already active in the market.
The Bigger Picture
Despite the lack of enthusiasm for crypto, the survey highlights a broader change in trading behavior, with an increased focus on online and e-trading activities. Inflation and tariffs remain primary concerns for over 40% of participants, coupled with geopolitical tensions. Market volatility continues to be a significant challenge, with 41% of respondents citing it as a key trading obstacle.
Regulatory Shifts in the U.S.
While traders are hesitant, the regulatory landscape in the U.S. is starting to show more support for the crypto industry. Recent efforts, such as the reduction of the SEC's crypto enforcement unit, suggest a potential government push towards fostering a crypto-friendly environment. Initiatives like the creation of a U.S. sovereign wealth fund could also encourage more interest in cryptocurrencies.
As institutional traders remain cautious, the financial world is watching the development of crypto regulations and their potential impact on future market dynamics.
