71% of institutional investors do not plan on trading crypto this year, according to JPMorgan

A recent survey by JPMorgan has revealed that 71% of institutional investors have no plans to engage in cryptocurrency trading in 2025, a slight improvement from 78% in 2024. This data points to a continuing cautious stance among institutional investors toward the cryptocurrency market. The primary reasons behind this reluctance are broader economic factors, particularly concerns about inflation and tariffs, which 51% of institutional traders identified as the biggest market risks for 2025, a sharp increase from 27% in 2024.

Despite this ongoing wariness towards crypto trading, the survey suggests an increasing interest in alternative assets as investors seek to mitigate the uncertainty caused by these macroeconomic pressures, such as former President Trump’s tariffs. Interestingly, this decline in crypto interest comes amidst the improved regulatory climate for digital assets, especially in the United States. With regulatory bodies like the SEC approving Bitcoin and Ethereum spot ETFs, these changes have allowed institutions to gain exposure to crypto in a regulated environment.

The recent scaling back of the SEC’s crypto enforcement unit further signals a more favorable regulatory approach, which some believe will eventually encourage more institutional participation. However, even with these regulatory advancements, the survey indicates that most institutional investors remain hesitant to actively engage in crypto markets in the near term.

That said, institutional adoption of cryptocurrencies is taking shape in different ways. Major asset management firms like BlackRock and Fidelity have been steadily increasing their holdings in Bitcoin and Ethereum. Just recently, BlackRock made a significant acquisition of $276.16 million worth of Ethereum. In December 2024, BlackRock and Fidelity made a joint purchase of $500 million worth of Ethereum in just 48 hours, underscoring the growing involvement of institutional investors, albeit with a cautious approach.

In summary, while the crypto market continues to be met with hesitation from many institutional investors due to ongoing macroeconomic concerns, major asset managers are still making substantial moves to secure crypto assets, indicating that institutional interest is far from fading.