Institutional interest in cryptocurrency appears to be wavering, with a JPMorgan survey revealing that 71% of institutional traders have no plans to trade digital assets in 2025.
While this marks a slight improvement from 78% last year, the persistent reluctance raises questions about whether crypto is losing momentum in institutional portfolios.
Source: JP Morgan
At the same time, the broader market is expecting more clarity on digital asset regulations to drive mainstream adoption.
The United States Securities and Exchange Commission (SEC) recently scaled back its crypto enforcement unit, and political figures, including President Donald Trump, have introduced policies that signal greater institutional acceptance of crypto.
Macroeconomic concerns such as inflation, tariffs, and geopolitical instability remain top priorities for traders, potentially overshadowing the perceived opportunities in digital assets.
This growing divide between regulatory support and institutional hesitance could reshape how crypto is integrated into traditional financial markets in the years ahead.
Traditional assets take priority
Although digital asset markets have evolved significantly, institutional players continue to prioritise traditional investment strategies over crypto trading.
According to JPMorgan’s survey of 4,200 institutional traders from 60 global locations, only 16% planned to trade crypto in 2025, while 13% were already involved—both figures slightly higher than last year.
Despite these marginal gains, the overwhelming majority remain disengaged.
A key factor influencing this trend is the perceived unpredictability of crypto markets compared to other asset classes.
Market volatility was cited as the biggest trading challenge by 41% of respondents, up from 28% in 2024.
This concern has likely been amplified by last year’s turbulence in the crypto sector, including high-profile bankruptcies, regulatory fines, and exchange collapses.
Even with the US government demonstrating a more favourable stance on crypto, major institutions remain cautious.
The SEC’s decision to scale back its crypto enforcement unit, coupled with the expectations of a push to integrate stablecoins into the financial system, signals an official shift towards greater industry support.
Donald Trump’s recent executive order establishing a sovereign wealth fund—which could include Bitcoin holdings—suggests that policymakers are positioning the US to be more competitive in digital asset markets.
However, these regulatory shifts have not yet translated into widespread institutional adoption.
Instead, many traders remain focused on macroeconomic risks such as inflation, tariffs, and geopolitical instability, with 51% citing these as their primary concerns for 2025.
Digital trading expands, but crypto lags
While the survey highlights a reluctance towards crypto trading, it also underscores a broader trend towards increased digital and algorithmic trading.
JPMorgan found that 100% of institutional traders plan to expand their use of electronic trading platforms, particularly for less liquid assets.
This shift suggests that, while institutions are embracing technology to optimise trading efficiency, they are still hesitant about crypto’s long-term viability.
One possible reason for this disconnect is the lingering regulatory uncertainty surrounding digital assets in key financial hubs.
Although US policymakers have recently taken steps to integrate crypto into traditional markets, the European Union and Asia remain divided on their approaches to oversight and taxation.
This inconsistency has left institutional traders uncertain about the long-term risks of crypto investments.
Concerns about liquidity and counterparty risk continue to weigh on institutional decision-making.
Many traders still view digital assets as a speculative market dominated by retail investors, with insufficient safeguards to ensure stability during periods of market stress.
Despite these reservations, the landscape could change as institutional-grade custody solutions, improved risk management frameworks, and government-backed digital currencies emerge.
The recent push by the US Treasury to legitimise stablecoins could encourage greater institutional participation by offering a bridge between traditional finance and the crypto ecosystem.
Will institutions embrace crypto in 2025?
The survey findings suggest that institutional adoption of crypto remains slow but not stagnant.
While a small percentage of traders are actively engaging with digital assets, most remain cautious due to concerns about volatility, liquidity, and regulatory clarity.
However, ongoing policy shifts, advancements in stablecoin integration, and evolving trading infrastructure could gradually change institutional attitudes.
If some major financial institutions begin to incorporate digital assets into their portfolios more strategically, others may follow.
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