New data shows that most global institutional traders have no interest in exposing holdings to digital assets although the number of pro-crypto firms has recorded a slight growth.
A recent JP Morgan 2024 survey from over 4000 financial market participants shows creeping acceptance of Bitcoin and other cryptocurrencies by institutional traders.
According to participants, 78% of these traders have no plans to trade digital assets soon, recording an increase from 2023’s numbers.
Last year, 72% of trades noted that they would not add crypto assets to their portfolios, with several analysts pointing to the lack of uniform regulations in the market as a possible reason for pushing out investors.
Only 9% of firms responded positively to the fact that they trade digital assets, a slight 1% increase from last year when investors faced the FTX saga.
For prospects, none of the firms not currently trading virtual assets plan on opening that division in the next five years despite 14% responding positively last year.
2023 survey results also show that 6% of participants say they will start trading digital assets in the next 12 months. This year, 12% showed interest in resuming trading digital assets.
Although figures from the survey show a sharp stance against the crypto market, the positives can be seen in the 12% of the 4,000 traders who want to gain exposure to the market on the back of recent developments.
Furthermore, participants in the JP Morgan survey were asked about the next big technology in trading, and many firms pointed to Artificial Intelligence (AI) ahead of distributed ledger technology (DLT). While 61% voted for AI, only 7% backed blockchain technology.
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Analysts have lamented reoccurring digital asset scams in the past two