Good day everyone,
I hope you are all well and having an excellent week, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at a recent announcement by JPMorgan that 78% of Institutional Traders are not interested in trading crypto.
JPMorgan Survey
A recent JP Morgan 2024 survey from over 4000 financial market participants has noted how most global institutional traders have no interest in exposing holdings to digital assets. However, the number of pro-crypto firms has recorded a slight growth as the acceptance of Bitcoin and other cryptocurrencies by institutional traders is slowly creeping upwards. Of the participants in the survey, 78% of these traders stated they have no plans to trade digital assets anytime soon. This is an increase from JP Morgan's 2023 survey results, where only 72% of trades noted that they would not add crypto assets to their portfolios.
Several analysts also pointed out the lack of uniform regulations in the market as a reason for pushing out investors. Within the survey only 9% of firms responded positively in terms of trading digital assets, with a slight 1% increase from last year. In the 2023 results, it should be noted that investors faced the disastrous recent dilemma of the FTX collapse.
None of the firms which do not currently trade digital virtual assets are planning on opening that division in the next five years, and this comes despite 14% of respondents giving positive sentiments in the previous year. The 2023 survey results also noted that 6% of participants will begin trading digital assets in the next 12 months. In 2024, that increased to 12% who have interest in resuming trading digital assets.
The figures from the survey show a sharp stance against the crypto market but there are still positives which can be noted in the 12% of the 4,000 traders who wish to gain exposure to the market on the back of recent developments.
Participants in the JP Morgan survey were also asked about the next big technology in trading. Many of the firms responded that Artificial Intelligence (AI) will be the standout player and ahead of distributed ledger technology (DLT). Of the participants, 61% voted for AI and only 7% backed blockchain technology.
Analysts also pointed to the reoccurring digital asset scams over the past two years, noting they are hurdles in the road to mass adoption. These frequent hacks have cost the industry millions and are one of the key reasons why institutional traders and traditional market players are avoiding the crypto market.
In 2023, over $2 billion was lost through hacks and scams in the cryptocurrency market and these bad actors are opening up further debates on the safety of user assets. The 2022 collapse of the Terra Network and the bankruptcy of FTX wiped millions off the market while attracting bottleneck regulations to the sectors.
The United States regulators saw these as opportunities to pounce on the cryptocurrency market, filing multiple lawsuits against cryptocurrency firms such as Binance and Coinbase. They did so without specific rules in place and it resulted in some firms noting their interest in potentially moving to other jurisdictions.
Traditional finance players have reduced their investment due to these conditions, although recent activities like the approval of a spot Bitcoin ETF has been tipped to change the tide. This is because the United States Securities and Exchange Commission (SEC) approved the ETF's and since then there has been a steady inflow of funds into the market with many traditional investors considering it a new window of investment.
Have a great day.
Peace. CryptoGod-1.
Referral Links and Follow Me:
