Institutional Traders Remain Cautious on Crypto in 2025 – JPMorgan Survey Reveals

A recent survey by JPMorgan Chase & Co. highlights that many institutional traders remain hesitant about entering the cryptocurrency market in 2025.

Factors Influencing Institutional Hesitation

According to the survey, 71% of institutional traders have no plans to trade cryptocurrencies this year.

This marks a decrease from 78% in 2024, suggesting a slight increase in interest. Additionally, 16% of respondents plan to trade crypto in 2025, while 13% are already active in the market. These figures have risen compared to the previous year, indicating a gradual shift in sentiment.

Despite the evolving regulatory environment in the U.S., many institutional traders remain cautious. The survey found that 41% of participants identified market volatility as their primary trading challenge for 2025, up from 28% the previous year.

🔥JPMorgan survey: 71% of institutional traders have ‘no plans’ for crypto this year
Respondents signaled that inflation and tariffs will have the biggest impact on markets in 2025, followed by escalating geopolitical tension and market volatility was the biggest challenge

— SDCTradecoin (@Callatran80) February 6, 2025

Concerns over inflation and tariffs were also highlighted as significant factors expected to impact markets this year.

Eddie Wen, JPMorgan’s global head of digital markets, noted to Bloomberg, “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.”

This perspective aligns with recent regulatory developments aimed at integrating cryptocurrencies into traditional financial systems.

Shifts in Regulatory Landscape

Under the current administration, a notable shift has been toward more crypto-friendly policies. The establishment of a “crypto working group” and the appointment of pro-crypto officials signal a departure from previous regulatory stances.

These changes are designed to facilitate greater involvement of traditional financial institutions in the crypto market.

Despite these regulatory advancements, most institutional traders remain on the sidelines. The cautious approach reflects ongoing concerns about market volatility and the need for a more stable investment environment.

While the current data indicates hesitation, the slight decrease in the percentage of traders avoiding crypto suggests a gradual warming to digital assets.

The evolving regulatory landscape in the U.S. coincides with reports that President-elect Donald Trump plans to make an executive order to make cryptocurrency a national priority.

This directive is expected to foster collaboration between regulators and the crypto industry while also exploring the creation of a government Bitcoin reserve.

As the regulatory environment continues to evolve and market infrastructure matures, it’s possible that more institutional traders will consider entering the cryptocurrency space in the future.