JPMorgan Survey: 70% of Institutional Traders to Sideline Crypto in 2025

A recent survey conducted by JPMorgan reveals that over 70% of institutional traders have no plans to trade or invest in cryptocurrencies in 2025. Despite the growing mainstream adoption of digital assets, many institutional players remain skeptical, citing concerns over regulation, volatility, and market maturity.

Institutional Caution in Crypto Markets

The JPMorgan e-Trading Edit survey, which polled hundreds of institutional traders across major financial firms, paints a cautious outlook for crypto in the coming year. While digital assets have gained traction among retail investors and hedge funds, the majority of traditional financial institutions are still hesitant to dive in.

Key Findings from the Survey:

• Over 70% of traders stated they would not engage in crypto trading in 2025.
• Regulatory uncertainty remains the top reason for avoiding digital assets.
• Market volatility and lack of infrastructure were also cited as major concerns.
• Despite this, some institutional players are still bullish, with a minority planning to increase their crypto exposure.

Why Institutions Are Steering Clear of Crypto

Several factors are influencing institutional reluctance toward crypto:

1. Regulatory Uncertainty – Governments and regulators worldwide are still working on comprehensive crypto laws, making compliance a challenge for major institutions.
2. Market Volatility – Crypto remains a highly volatile asset class, which clashes with the risk-averse nature of traditional institutional trading.
3. Lack of Infrastructure – While crypto exchanges have improved security and liquidity, many institutions still see gaps in custodial services, settlement mechanisms, and risk management tools.
4. SEC & ETF Developments – Although the recent approval of Bitcoin spot ETFs was seen as a milestone, some firms remain skeptical about crypto’s long-term role in institutional portfolios.

A Divided Outlook: Some Institutions Still Bullish

While the majority of institutional traders remain cautious, there are still signs of growing interest in crypto among hedge funds, asset managers, and private wealth firms. Some institutions are exploring Bitcoin and Ethereum investments through ETFs, while others are betting on blockchain-based financial products.

JPMorgan analysts have noted that while mainstream adoption is slow, crypto is still evolving as an asset class, and institutional participation could grow if regulatory clarity improves.

What’s Next for Institutional Crypto Adoption?

Despite the skepticism revealed in JPMorgan’s survey, the long-term trajectory of institutional crypto adoption remains uncertain. Regulatory clarity, technological advancements, and further integration of digital assets into traditional financial systems could shift attitudes in the coming years.

For now, the survey suggests that most institutional traders are taking a wait-and-see approach—choosing to stay on the sidelines rather than dive into the crypto market in 2025.