The majority of institutional investors plans to steer clear of crypto this year.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
A recent survey by JPMorgan shows that many institutional investors are cautious about cryptocurrency trading. According to the report, 71% of investors plan to avoid crypto in 2025 entirely.
Although there is some slight growth in crypto involvement this year, the overall feeling remains skeptical. This skepticism mainly comes from worries about market volatility and unclear regulations.
Furthermore, the survey found that 16% of institutional traders plan to trade in crypto this year, up from 13% in 2024. Additionally, 13% of respondents are already trading in crypto, a slight increase from the previous year. These numbers show that while there is some interest in digital assets, most institutional investors still see crypto as a niche market.
Meanwhile, many institutional traders are worried about the market’s volatility. In the recent survey, 41% of respondents said this is their primary concern, up from 28% last year.
The wild price changes in the crypto market continue to make them question whether it is a safe investment. Traders are cautious about the risks linked to digital assets, especially with the uncertainty around regulations and the ongoing legal problems major crypto exchanges face. The legal relationship between Binance, Coinbase, Ripple Labs, and the US SEC still lingers.
Although there is reluctance towards cryptocurrency, the survey found a strong interest in expanding electronic trading systems. All institutional traders surveyed per the report plan to use electronic trading platforms more. Also, the survey revealed that Artificial Intelligence (AI) and machine learning remain the most influential technologies across several regions.
This highlights the growing role of digital tools in finance today. While cryptocurrency may only play a small role in institutional trading right now, the push for better technology in trading shows a move toward more efficient, tech-based solutions.
It is worth noting that the crypto market is inherently volatile. Based on this, there is a limit to what crypto traders can bear, as showcased by the JPMorgan survey.
A pseudonymous crypto trader Sykodelic mentioned that despite Donald Trump’s pro-crypto moves, the market keeps retracing. Sykodelic claims that the crypto market, especially the market-leading digital asset Bitcoin BTC $79 823 24h volatility: 3.9% Market cap: $1.58 T Vol. 24h: $44.21 B , has lost any sort of rhyme or reason.
Recall that the crypto market saw significant changes in 2024, including the spot crypto exchange-traded funds (ETFs) approval and the first pro-crypto US President Donald Trump being voted to power. It is also clear that the market is not following previous patterns anymore. As a result, traders are not pleased with crypto trader Sykodelic, claiming that the market is cooked.
Meanwhile, Charles Hoskinson, the renowned creator of the layer-1 blockchain network Cardano, claims 2025 is the year for cryptocurrencies. These remarks from the crypto pioneer stem from massive fluctuations in BTC prices.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
