A recent JPMorgan e-trading survey reveals that over 70% of institutional traders do not plan to trade cryptocurrencies this year.
Despite growing regulatory clarity and increasing government support for digital assets, the survey indicates that most traders remain hesitant about entering the crypto market.
Institutional Traders Show Limited Interest in Crypto
According to JPMorgan’s January survey of institutional traders, 71% of respondents stated they had no plans to trade cryptocurrencies in 2025.
While this figure is a decline from 78% in 2024, it still suggests a lack of enthusiasm for digital assets among traditional financial institutions.
However, the number of institutional traders actively engaging with crypto has increased. The survey found that 16% of respondents plan to trade crypto this year, while 13% are already doing so—both figures higher than the previous year.
In contrast, 100% of respondents expressed intentions to increase their online or electronic trading activities, particularly for less liquid assets.
This suggests that while crypto remains a niche market for institutional traders, the overall trend toward digital trading is accelerating.
Regulatory Improvements and Government Support
The lack of widespread institutional interest in crypto comes despite a more favourable regulatory landscape in the United States.
Recent changes in financial regulation, including a shift in policy direction under the Trump administration, have lowered barriers for traditional banking institutions to enter the digital asset space.
Eddie Wen, JPMorgan’s global head of digital markets, noted that recent government actions suggest increased support for crypto markets.
“Recent headlines suggest that the new administration supports the market and recent changes have lowered the barriers for traditional banking community members to enter this space,” Wen told Bloomberg.
Additionally, the U.S. SEC has scaled back its crypto enforcement unit, signalling a more accommodating approach toward digital assets. This regulatory easing could encourage more institutional traders to consider crypto investments in the future.
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U.S. Sovereign Wealth Fund and Stablecoin Developments
Further bolstering optimism around crypto adoption, former President Donald Trump recently signed an executive order to establish a U.S. sovereign wealth fund.
The fund is expected to be co-managed by Treasury Secretary Scott Bessent and Secretary of Commerce Howard Lutnick, both of whom have expressed pro-crypto views.
Senator Cynthia Lummis has suggested that Bitcoin could play a role in this sovereign wealth fund, potentially increasing government involvement in digital assets. If implemented, such a move could drive greater institutional confidence in cryptocurrencies.
Meanwhile, White House “crypto czar” David Sacks has stated that the U.S. is actively working to bring stablecoins under domestic regulatory frameworks.
The goal is to reinforce the U.S. dollar’s global dominance by integrating stablecoins into the financial system, further legitimizing digital assets in mainstream finance.
JPMorgan’s survey highlights the cautious approach institutional traders continue to take toward cryptocurrencies, despite increasing government support and regulatory clarity.