Institutional Investors in the US Asked about Cryptocurrencies: How Many Will Invest in Crypto?
A recent survey conducted by JPMorgan has shed light on the stance of large institutional investors in the US towards cryptocurrencies. Despite the introduction of the first spot Bitcoin (BTC) exchange-traded funds (ETFs) in the country, it appears that most institutional investors are not in a rush to allocate resources to crypto trading.
JPMorgan’s annual e-commerce survey involved interviews with over 4,000 institutional investors, and the findings revealed that 78% of the participants do not currently have any plans to engage in crypto or digital currency trading. Only 12% of the investors expressed a willingness to enter the crypto market within the next five years.
These results mark a surprising shift in sentiment within the asset class, as previous survey findings indicated higher expectations for cryptocurrency adoption. In fact, in 2023, 72% of the participants stated that they had no intentions of trading crypto or digital currency.
The survey also highlighted the changing landscape of transformative technologies. While blockchain technology was once seen as a driving force for change, 61% of the respondents now believe that artificial intelligence (AI) and machine learning will have the most influence in shaping the future of commerce over the next three years. This represents an 8% increase in the perceived importance of AI and machine learning compared to the previous year. On the other hand, the significance of blockchain and distributed ledger technology has decreased from 12% to 7% in 2024.
Interestingly, the survey did show a slight uptick in the number of investors who are actively interested in the cryptocurrency market. Nine percent of the respondents reported that they are currently trading crypto or digital currency, a marginal increase compared to the eight percent recorded in 2023.
When asked about the events that are likely to have the biggest impact on markets in 2024, 27% of the surveyed investors believed that inflation would be the most influential factor, followed by 20% who viewed the US election as the primary driver. The perceived risk of a recession decreased from 30% in 2023 to 18%.
In terms of challenges faced by investors in day trading, 28% of the respondents predicted that volatile markets would be their biggest hurdle, while liquidity availability and workflow efficiency were also identified as significant concerns. The importance of liquidity availability increased from 22% in the previous year to 24% in 2024.
As institutional investors navigate the financial landscape, it is clear that their interest in cryptocurrencies is not as widespread as initially anticipated. However, the slight increase in those actively trading crypto or digital currency suggests a growing curiosity within the investor community. The survey also underscores the evolving priorities within the technology sector, with AI and machine learning taking center stage in shaping the future of commerce. With ongoing developments in the market, it remains to be seen how institutional investors will adapt their strategies and portfolios to reflect these changing dynamics.
