A new JPMorgan Chase survey found that 72% of institutional traders “have no plans to trade crypto,” while 14% plan to do so within five years. Institutional traders also expect “recession risk” to have the greatest impact on the market in 2023.
JPMorgan’s Institutional Trader Survey
Global investment bank JPMorgan Chase & Co. released the results of its annual “e-Trading Edit” survey on January 16, which the bank said provides “insight into the forecast for the year ahead,” adding that 835 institutional traders in 60 offices worldwide It added that 835 institutional traders in 60 locations around the world participated in the survey.
The survey asked institutional traders about their plans to invest in cryptocurrencies, JP Morgan elaborated.
72% of traders surveyed “have no plans to trade crypto/digital coins,” and 14% are not currently trading but expect to do so within five years. 8% currently trade and 6% currently do not but plan to do so within a year.
In addition, institutional traders predict that cryptocurrencies and digital coins will “see the largest increase in electronic trading volume over the next year.” Additionally, “100% of responding traders predicted an increase in electronic trading activity,” JPMorgan noted.
Institutional Investor Opinions on Recession and Inflation
The survey also asked institutional investors about their outlook for the economy.” Traders expect “recession risk” to have the greatest impact on the market in 2023, followed by “inflation” and “geopolitical conflict,” JPMorgan explains and elaborates.”
When traders who predicted that ‘inflation’ would impact the market were asked, ‘What is your outlook for the impact of factoring in inflation in 2023?’ 44% of traders predicted that inflation would decline.”
Additionally, “58% of U.S.-based traders surveyed expect U.S. inflation levels to remain flat, while 41% of U.K.-based traders expect inflation to decline,” JPMorgan explained.
{While most institutional traders surveyed by JPMorgan have no plans to invest in crypto, several other surveys indicate strong institutional interest in the asset class. A survey by asset management firm Devere Group found that 82% of millionaires have asked their financial advisors about adding cryptocurrencies, including Bitcoin, to their portfolios. Another survey by Nickel Digital Asset Management found that institutional investors expect “a strong year for bitcoin,” with 65% agreeingthat BTCcould reach $100,000. Last month, global investment bank Goldman Sachs ranked bitcoin as the best performing asset of the year.
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