Arslan Butt
Crypto is far from dead and has been gaining more and more attention from institutional investors. According to a survey conducted by Fidelity Digital Assets, 28% of institutional investors plan to trade cryptocurrency in 2023. This highlights the potential of cryptocurrency as an asset class and its ability to attract institutional capital.
According to a recent poll by JPMorgan, 28% of institutional e-traders have confirmed plans to trade crypto/digital currencies in 2023.
Crypto has seen a lot of volatility in the past few years, but its underlying technology, blockchain, continues to be adopted by many companies. This is driving more investors towards crypto as they see the potential it has for long-term growth. With increased adoption and increased liquidity, crypto could become a mainstream asset class in the near future.
Institutional Investors Are Wanting In On Crypto: Here’s What You Need To Know
JPMorgan Chase & Co. published a survey on Wednesday, February 1. JPMorgan’s e-Trading Edit, now in its seventh edition, polled 835 traders from 60 countries on the macroeconomic and technical trends affecting trading success in 2023. The survey lasted 20 days, from January 3, 2023, to January 23, 2023. According to the poll, traders are hesitant about digital assets.
MarketWatch: JPMorgan Chase & Co. on Wednesday published a survey stating 72% of institutional traders, out of the 835 surveyed, “have no plans to trade crypto” in 2023. #TXLege #PIFS https://t.co/ocFfBmseOT
— Rafael Anchía (@RafaelAnchia) February 4, 2023
In the digital asset market, only 14% of respondents said they would start or continue trading this year. Only 8% of those polled said they trade cryptocurrencies and digital coins, and 14% said they plan to do so within the next five years. The survey found that 72% of institutional traders are skeptical of cryptocurrencies this year, while the remaining 28% plan to trade them in 2023.
JPMorgan Chase & Co. on Wednesday published a survey stating 72% of institutional traders, out of the 835 surveyed, “have no plans to trade crypto” in 2023. But some industry experts say that this doesn’t mean crypto is dead. The survey was conducted between …
— Hourly Crypto Web3 Content || WAGMI (@tryweb3) February 2, 2023
Furthermore, at the time of the study, 92% of institutional traders polled by JPMorgan stated that they had no exposure to the market for digital assets in their investment portfolio. It could be because more than half of respondents cited volatile markets as their biggest daily challenge.
Crypto Is Not Dead: Why Cryptocurrency Is Here To Stay
Crypto isn’t dead, according to industry insiders, but skepticism, macroeconomic issues, and a lack of regulation may be the reasons why 72% of institutional traders aren’t investing in crypto this year. Furthermore, the survey comes just months after the tragic collapses of the Terra (LUNA) network and trading platform FTX in 2022, which lowered customer and trader sentiment in the cryptocurrency industry.
As a result, this could be because more than half of respondents cited volatile markets as the most difficult barrier to daily success. According to Jan Sammut, vice president of marketing at Original Protocol, an Ethereum-based NFT and decentralized finance platform, these institutions are especially wary due to the recent price drop and require a much stronger case to enter the market than individual investors.
Institutional Investors: The Reasons Why They Are Still Investing in Crypto
According to a cryptocurrency exchange Coinbase survey last year, 62% of institutional investors purchased digital assets between November 2021 and late 2022, seemingly unaffected by the prolonged crypto winter.
Some good news from Coinbase x Institutional Investor's Institutional investor outlook:
✅58% intend to increase allocations over the next 3 years
✅62% of institutional investors who are currently invested in crypto increased their allocations in the past 12 months pic.twitter.com/PcfLJ8vxji— Stablehouse (@stablehouse) November 23, 2022
Furthermore, according to a recent study published in June 2022, 71% of high-net-worth individuals (HNWI) had already made investments in cryptocurrencies, with many more preferring longer-term plans over day-to-day trading.
Meanwhile, 53% of traders believed that artificial intelligence (AI) and machine learning-related technologies would have a greater impact on the future of trading than 12% of traders, according to the study. It demonstrates that, despite their skepticism, investors continue to value digital assets over time.
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This article was written for Business 2 Community by Arslan Butt.
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