From Nasdaq:

In a recent JPMorgan survey, 78% of institutional traders indicated that they are not planning to engage in cryptocurrency trading in the foreseeable future. This is part of the bank’s 2024 e-Trading annual survey. However, blockchain technology and distributed ledger technology are viewed as influential in shaping the future of trading by some traders.

The survey also revealed that AI and machine learning are predicted to have the most significant impact on trading over the next three years, with 61% of participants expressing this belief. This 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% from 25% over that time.

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.

The lack of institutional interest in cryptocurrencies is a significant shift from the trend observed in 2023, when institutional investors were increasingly allocating a larger portion of their portfolios to Bitcoin and Ethereum, indicating a growing interest in the crypto market.

One possible reason for the increase in active institutional traders in the digital currency sector is the entry of large financial institutions into the industry, as well as the approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January. This signifies a gradual recovery for the industry, despite the current disinterest from institutional traders. However, 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.



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