A recent JPMorgan e-trading survey has revealed that 71% of institutional traders have no plans to trade crypto in 2025. While this figure is lower than the 78% recorded in 2024, it still highlights a cautious approach by traditional finance players towards digital assets.
The survey, conducted in January 2025 with 4,200 respondents from 60 locations worldwide, found that only 16% of traders plan to enter the crypto market this year, while 13% are already trading crypto—both figures showing an increase from last year.
Growing Interest Despite Institutional Hesitation
Despite the general reluctance, crypto adoption among institutional traders is slowly rising. The survey results indicate a 5% decrease in those avoiding crypto, while active traders and those considering crypto investments have seen slight upticks.
This comes at a time when the regulatory landscape in the United States is becoming more favorable. The U.S. Securities and Exchange Commission (SEC) has recently scaled back its crypto enforcement unit, signaling a softer stance towards the industry.
Government Support and Policy Shifts
A series of policy changes under the Trump administration have lowered entry barriers for traditional financial institutions to enter the crypto space. Notably, Donald Trump’s recent executive order has directed the government to establish a sovereign wealth fund, which may include Bitcoin.
Additionally, Senator Cynthia Lummis hinted at potential Bitcoin acquisitions by the sovereign fund, while White House “crypto czar” David Sacks has expressed plans to bring stablecoins onshore to strengthen the dollar’s global and digital dominance.
Market Concerns and Institutional Priorities
While crypto remains a secondary focus for most institutional traders, the survey highlights inflation, tariffs, and geopolitical tensions as the biggest market concerns for 2025. Notably, 41% of respondents cited market volatility as their top trading challenge, a significant jump from 28% in 2024.
Despite their hesitation towards crypto, institutional traders are embracing digital transformation, with 100% of respondents planning to increase online trading activities, particularly in less liquid assets.
While institutional traders remain largely cautious about crypto trading, interest is gradually increasing as regulations ease and government support strengthens. With ongoing policy changes and macroeconomic shifts, 2025 could prove to be a pivotal year for institutional crypto adoption.
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