JPMorgan Report: Institutional Traders Show Limited Interest in Crypto, Favor AI for Future Trading Dynamics

Insights from JPMorgan's e-trading survey shed light on institutional sentiments towards crypto assets and the evolving landscape of trading technologies.

JPMorgan's latest e-trading survey, encompassing insights from over 4,000 institutional traders across 65 countries, has unveiled that a striking 78% of surveyed traders expressed no intention to engage in crypto or digital coin trading. Conversely, 12% indicated plans to enter this asset class, while only 9% reported ongoing involvement in crypto trading activities.

The survey also delved into traders' perceptions of market influencers for the year ahead. Notably, 27% of respondents identified inflation as the primary concern, closely trailed by 20% citing the U.S. election's potential impact. Meanwhile, recession risk, although diminishing from 30% in 2023 to 18% in 2024, remains a notable consideration. Geopolitical conflicts, market and economic disruptions, and U.S.-China relations were also highlighted as significant factors shaping market dynamics.

In an intriguing revelation, 61% of traders identified artificial intelligence (AI) and machine learning as the paramount force driving future trading developments over the next three years. This represents an 8% surge in perceived importance compared to the previous year. Conversely, blockchain and distributed ledger technology saw a decline in perceived relevance, dropping from 12% to 7% in 2024 according to JPMorgan's assessment.

Conducted between January 8 and January 22, the survey offers a comprehensive snapshot of institutional sentiments in the current financial landscape and intriguing perspectives on cryptocurrency trading and the evolving role of technology in financial markets, in particular.

Despite JPMorgan's involvement as a lead authorized participant for the Ishares Bitcoin Trust (IBIT), which is linked to the recently launched spot bitcoin exchange-traded fund (ETF) by Blackrock, CEO Jamie Dimon remains skeptical about Bitcoin's value. Dimon has famously likened the cryptocurrency to a "pet rock" and cautioned investors against its allure, albeit acknowledging their autonomy in investment decisions within a free market.