According to a recent survey by JPMorgan Chase, 72% of institutional traders “had no plans to trade crypto,” while 14% intend to do so within the next five years. Institutional traders predict that in 2023, “recession risk” will affect markets the most.

JPMorgan’s Institutional Trader Survey

On Thursday, the prestigious global investment firm JPMorgan Chase released the annual “e-Trading Edit” survey findings. According to the bank, the survey was conducted in January and offers “insight into projections for the year ahead.” It included 835 institutional traders from 60 different locations around the world.

The survey asked institutional traders about their plans to invest in cryptocurrencies. JPMorgan detailed:

72% of traders surveyed ‘have no plans to trade crypto/digital coin,’ with 14% predicting they’re not currently trading but plan to trade within 5 years. 8% are currently trading and 6% are not currently, but plan on within 1 year.

Additionally, institutional traders projected that “100% of responding traders predicted they will expand electronic trading activity” and that “digital coins will have the highest gains in electronic trading volumes over the coming year.”

Institutional Traders on Recession and Inflation

Institutional traders’ opinions on the economy were also gathered through the survey. In 2023, traders expect “recession risk” to have the highest influence on markets, followed by “inflation” and “geopolitical conflict,” according to JPMorgan. JPMorgan elaborated:

For traders that predicted ‘inflation’ to have an impact on markets, we asked them ‘What is your outlook for the impact of inflation when pricing it in for 2023?,’ with 44% of traders predicting inflation will decrease.

Additionally, “41% of traders polled based in the United Kingdom estimate inflation to decline” and “58% of traders surveyed based in the United States expect U.S. inflation levels to level out,” according to JPMorgan.

Although most institutional traders polled by JPMorgan do not intend to participate in cryptocurrencies, other studies reveal a greater institutional interest in the asset class. According to a survey conducted by asset management company Devere Group, 82% of millionaires have spoken with their financial advisors about putting cryptocurrencies like bitcoin in their portfolios. According to a different study conducted by Nickel Digital Asset Management, institutional investors anticipate “a solid year ahead for bitcoin,” and 65% of them believe that BTC may reach $100,000. Bitcoin was named the best-performing asset of the year by major financial bank Goldman Sachs last month.

What do you think about this JPMorgan survey? Let us know in the comments section below.

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