Despite a more favourable regulatory environment, institutional traders remain cautious about crypto trading, according to JPMorgan’s latest e-trading survey. The survey, conducted in January 2025, revealed that 71% of institutional traders have no plans to trade crypto this year.
This marks a slight improvement from last year when 78% of traders expressed no interest in digital assets. Meanwhile, 16% plan to trade crypto in 2025, and 13% are already doing so, both figures showing an upward trend from 2024.
Regulatory Shifts Boost Market Confidence
The survey results come amid regulatory changes in the United States that favour crypto adoption. Under the new administration, financial agencies have reduced barriers for traditional banking institutions to enter the space.
Eddie Wen, JPMorgan’s global head of digital markets, noted that recent regulatory adjustments have created a more welcoming environment for crypto. Additionally, the SEC has scaled back its crypto enforcement unit, signaling a shift in government stance.
US Sovereign Wealth Fund Could Include Bitcoin
In another major development, Donald Trump signed an executive order establishing a US sovereign wealth fund. The fund, managed by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, both pro-crypto figures, could potentially invest in Bitcoin.
Senator Cynthia Lummis hinted that Bitcoin might be a part of this fund, further reinforcing the idea that the US government is gradually warming up to digital assets.
Market Volatility and Economic Concerns Dominate
While crypto adoption remains slow among institutional traders, the survey identified inflation and tariffs as the biggest factors impacting markets in 2025. 41% of respondents cited market volatility as their biggest trading challenge, a sharp rise from 28% in 2024.
Additionally, escalating geopolitical tensions were also flagged as a key concern for traders this year.
Crypto Outlook: Slow but Steady Growth
While institutional adoption remains limited, the slight decline in skepticism and improving regulatory clarity indicate a gradual shift in perception. As the US government takes a more strategic approach towards digital assets, institutional involvement in crypto could see a more substantial rise in the coming years.
