JPMorgan, a leading global investment bank, has recently unveiled the findings of its annual e-trading survey, shedding light on the sentiments and strategies of institutional traders worldwide. The survey, conducted between Jan. 8 and Jan. 22, engaged 4,010 institutional traders hailing from over 65 countries.
A notable revelation from the survey is that a significant majority of institutional traders remain hesitant towards crypto assets. A staggering 78% of respondents expressed no intention to engage in crypto trading, while a mere 12% indicated plans to venture into this asset class. The survey underscores a prevailing cautious stance among institutional players regarding the crypto market's volatility and regulatory uncertainties.
Despite JPMorgan's recent involvement as a lead authorized participant for Ishares Bitcoin Trust (IBIT), in partnership with Blackrock, the sentiment towards cryptocurrencies remains mixed within the institution. JPMorgan Chase CEO Jamie Dimon has been vocal about his skepticism towards Bitcoin, dismissing it as a "pet rock" with no intrinsic value. Nevertheless, Dimon has maintained a stance of non-interference, stating, "But I don’t want to tell anyone what to do. It’s a free country."
In addition to crypto skepticism, the survey delved into other key market dynamics influencing institutional trading strategies. Concerns over inflation emerged as a top priority, with 27% of traders foreseeing its significant impact on markets in 2024. This sentiment is closely followed by apprehensions surrounding the U.S. election, cited by 20% of respondents, and recession risks, which saw a notable decrease from 30% in 2023 to 18% in 2024. Geopolitical tensions, market disruptions, and U.S.-China relations were also flagged as critical factors shaping trading decisions.
Furthermore, the survey highlighted the increasing prominence of artificial intelligence (AI) and machine learning in shaping the future of trading. A notable 61% of traders identified AI as the most influential factor over the next three years, marking an 8% surge in its perceived importance compared to the previous year. Conversely, blockchain and distributed ledger technology witnessed a decline in significance, dropping from 12% to 7% in 2024, according to the survey findings.
