JPMorgan survey shows 70% of institutional traders avoid crypto trading in 2025 despite growing interest - IcoHolder.

A recent survey conducted by JPMorgan has revealed that more than 70% of institutional traders have no plans to engage in cryptocurrency trading this year. The findings, which were part of JPMorgan’s annual e-trading survey, show a slight decrease in reluctance compared to 2024, when 78% of respondents said they would avoid the digital asset space. The results point to a persistent hesitation among institutional players when it comes to embracing crypto in the near term.

The survey, which included responses from 4,200 institutional traders across 60 global locations, also highlighted a modest uptick in interest for digital currencies. While only 16% of traders indicated that they would actively trade crypto this year, 13% reported already participating in the market, marking an improvement over the previous year’s figures.

Despite this limited interest in cryptocurrency trading, the survey revealed a clear consensus that institutional traders are keen to increase their online and e-trading activities. This trend is particularly noticeable in the realm of less liquid assets, with respondents signaling a preference for expanding digital trading activity in these areas.

The reluctance towards crypto trading among institutional investors stands in stark contrast to the evolving regulatory landscape in the United States, where recent developments suggest growing support for digital assets. Under the Biden administration, regulatory clarity around crypto has improved, particularly following the shakeup of financial regulatory agencies under the Trump administration.

Eddie Wen, JPMorgan’s global head of digital markets, explained to Bloomberg that these regulatory changes have lowered barriers for traditional financial institutions to enter the crypto space. He suggested that recent headlines signaling government backing for the industry could play a role in changing the market dynamics.

However, traders remain focused on more immediate economic challenges, with inflation and tariffs emerging as the primary risks in 2025. JPMorgan’s survey also found that market volatility was increasingly seen as a significant challenge, a concern voiced by 41% of respondents, up from 28% the previous year.

Gergana Thiel, JPMorgan’s global co-head of Macro Sales, expressed little surprise at the emphasis placed on inflation and tariffs, stating that these factors would likely remain at the center of market discussions in the coming months.

In addition to these findings, recent actions from the U.S. government have further reinforced the notion that crypto may see more institutional attention in the future. This week, the Securities and Exchange Commission (SEC) scaled back its crypto enforcement unit, while former President Donald Trump signed an executive order calling for the creation of a sovereign wealth fund. The fund, which would be part-managed by crypto-friendly figures such as Treasury Secretary Scott Bessent, is speculated to potentially include Bitcoin investments. Meanwhile, White House “crypto czar” David Sacks has emphasized the goal of bringing stablecoins onshore to solidify the dollar’s dominance in both the physical and digital realms.

As the market remains in a state of flux, it is clear that while institutional interest in cryptocurrency is growing, it will take time for mainstream adoption to fully materialize.