A recent survey from JPMorgan highlights a significant trend among institutional traders. The results show that 71% of them have no plans to engage in cryptocurrency trading this year. This marks a decrease from last year’s figure of 78%, indicating a slight shift in sentiment.
The JPMorgan survey, conducted between January 9 and 23 with over 4,200 clients from 60 locations globally, reveals that only 16% of respondents plan to trade crypto in 2025, while 13% are already involved in crypto trading. Both of these numbers are an improvement compared to 2024.
Despite the positive regulatory changes surrounding digital assets in the United States, many institutional investors remain cautious. Eddie Wen, JPMorgan’s global head of digital markets, noted that the new administration’s support for the market has lowered barriers for traditional banks to enter the crypto space. However, the hesitation among traders persists.
Respondents identified inflation and tariffs as the primary factors likely to impact markets in 2025, with 41% citing market volatility as their biggest trading challenge—a sharp increase from 28% last year. Gergana Thiel, global co-head of Macro Sales at JPMorgan, expressed that it’s not surprising for traders to focus on tariffs and inflation as central risks for the market.
The survey reflects a broader trend in the financial industry. While enthusiasm for online trading is growing—100% of participants indicated plans to increase their e-trading activities, particularly for less liquid assets—the interest in crypto remains low.
This reluctance comes despite recent developments favoring the crypto industry, including the SEC’s decision to scale back its crypto enforcement unit. Additionally, former President Donald Trump signed an executive order to establish a sovereign wealth fund, which may include investments in Bitcoin. Pro-crypto figures, like Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, will help manage the fund.
Furthermore, White House “crypto czar” David Sacks emphasized the U.S. goal to bring stablecoins onshore to bolster the dollar’s global dominance and digital presence.
As the landscape for digital assets evolves, institutional traders appear to be taking a cautious approach, weighing the benefits against market risks. The coming months will be crucial in determining whether this trend will continue or if crypto trading will gain more traction among institutional investors.
