In a recent survey conducted by JPMorgan, a significant majority of institutional traders have indicated their disinterest in cryptocurrency trading over the next five years.
What happened: The survey, which was part of the bank's 2024 annual e-commerce survey, revealed that 78% of institutional traders do not plan to engage in cryptocurrency trading in the foreseeable future. reported CoinDesk on Friday.
Despite the lack of enthusiasm for cryptocurrencies, a small group of traders see blockchain/distributed ledger technology (DLT) as the most influential technology in shaping the future of commerce over the next three years.
On the other hand, AI and machine learning are expected to have the most significant impact on commerce over the next three years, according to 61% of participants. This percentage represents an increase compared to 53% last year.
Blockchain technology, which was considered most influential in 2022, has seen a decline in interest, falling to 7% in 2024 from 25% in 2022.
Despite the general lack of interest, there has been a slight increase in the number of institutional traders active in the digital currency sector, with 9% of participants currently trading cryptocurrencies, up from 8% in 2023. Furthermore, 12% of traders plan to trade cryptocurrencies in the next five years.
One possible reason for this rise could be the entry of large financial institutions into the digital currency sector, leading to a gradual recovery of the industry. The approval of spot bitcoin exchange-traded funds (ETFs) in the United States in January, a major milestone for institutional investors, has also contributed to this recovery.
Because it is important: The lack of interest in cryptocurrencies among institutional traders is a significant change from the trend seen in 2023. Last year, institutional investors were increasingly allocate a larger portion of their portfolios to bitcoin BTC/USD and Ethereum ETH/USDindicating a growing interest in the cryptocurrency market.
The current disinterest in cryptocurrencies and the growing interest in artificial intelligence and machine learning could indicate a change in the priorities of institutional traders and the future of the trading sector.
Read next: Maxine Waters Says Lawmakers Are 'Very, Very Close' to Finalizing Stablecoin Regulation Bill
Image: WorldSpectrum from Pixabay
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