Institutional Investors in the US Asked about Cryptocurrencies: How Many Will Invest in Crypto?

Despite the launch of the first spot Bitcoin (BTC) ETFs in the US market, a new survey by JPMorgan reveals that most institutional investors have no immediate plans to devote resources to crypto trading.

The bank's annual e-commerce survey, which included interviews with more than 4,000 institutional investors, found that 78% of investors surveyed do not plan to trade crypto or digital currencies. Only 12% of investors plan to trade in the next five years.

This marks a surprising shift for the asset class, as survey results from previous years pointed to higher adoption expectations. In 2023, 72% of participants stated that they had no plans to trade crypto or digital currency.

While blockchain technology was once seen as a transformative technology, 61% of respondents predict that artificial intelligence and machine learning will be most influential in shaping the future of commerce in the next three years. This represents an 8% increase in importance since last year. Meanwhile, the importance of blockchain and distributed ledger technology has dropped from 12% to 7% in 2024.

However, the survey revealed a slight increase in the number of investors actively interested in the crypto market. Nine percent of survey respondents reported that they currently trade crypto or digital currency; This rate increased slightly compared to eight percent in 2023.

When it comes to the events investors predict will have the biggest impact on markets in 2024, 27% believe inflation will have the biggest impact, followed by 20% who believe the US election will have the biggest impact. Recession risk decreased from 30% in 2023 to 18%.

Investors also predict that 2024 will be a volatile year for markets. 28% of respondents predict that volatile markets will be their biggest challenge in day trading, followed by liquidity availability and workflow efficiency. The importance of liquidity availability increased from 22% to 24% in 2024.

*This is not investment advice.