Crypto: The bear market, a brake for institutions?

JPMorgan conducted a new survey from January 3 to 23, 2023 for the seventh edition of the e-Trading Edit. He then interviewed 835 institutional traders spread over 60 separate global sites. In particular, the participants gave their views on what could influence trading performance in 2023. In this context, they talked about investing in the crypto sector. The results of the survey on the subject may seem surprising, but they are explained by the current state of the crypto market. Discover them.

92% of institutional traders have no exposure to cryptos

JPMorgan’s recent report indicates that most institutional traders are hesitant to invest in cryptos. Already, 92% of institutional traders surveyed said they have no exposure to the crypto market. Next, 72% of survey participants said they do not plan to start in the industry this year.

Only 14% of institutional traders surveyed plan to continue crypto trading or start it this year. The remaining 14% of participants said they could start in the sector within 5 years. For them, there is no question of starting crypto trading this year.

Institutional Traders Avoid Exposure to Cryptos

Why are institutional traders shunning digital assets?

Institutional traders surveyed believe that it is not easy to achieve good daily results with crypto trading. Most of them have declared that there are challenges to be met in order to achieve good performance. According to 50% of institutional traders, it would first be necessary to succeed in meeting the challenge of market volatility crypto.

22% of survey participants spoke about the challenge of cash availability on the stairs. They were clearly concerned about this point, arguing that it could seriously hinder the achievement of good performance.

JPMorgan reported that only 12% of traders believe in the potential of blockchain technology for trading. They believe that this is the most influential in improving trading performance. At the same time, 53% of traders believe that it is technologies related to artificial intelligence that have this capacity. Yet by 2022, blockchain technology and artificial intelligence had each received 25% of traders’ votes. We can therefore conclude that institutional traders have lost confidence in crypto in the last 12 months.

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