"Institutional Traders Hold Steady on Crypto, Embrace Digital Trading"

Institutional traders' crypto plans for 2025 remain largely unchanged, with a majority, 71%, not planning to engage in crypto trading, according to a JPMorgan survey. This cautious approach persists despite growing regulatory clarity and a more supportive environment for crypto in the U.S. Only 16% of respondents indicated they would trade crypto this year, while 13% were already active in the space.

However, the survey also revealed a broader shift in trading behavior, with 100% of respondents planning to increase their online or e-trading activities, particularly with less liquid assets. This suggests a growing preference for digital platforms and products beyond traditional securities, even as crypto trading itself remains on the sidelines for most traders.

The regulatory landscape in the U.S. is showing signs of support for the crypto industry. Recent shifts under the Biden administration, including a scaling back of the SEC’s crypto enforcement unit, have led some to speculate that the government is preparing to foster a more crypto-friendly environment. Additionally, political moves such as the creation of a U.S. sovereign wealth fund and efforts to bring stablecoins onshore are being actively pursued.

Meanwhile, Interactive Brokers, an online brokerage firm with a $100 billion market cap, plans to offer more cryptocurrency tokens. The first token to be offered will be SOL once regulatory clarity is obtained. Currently, the maximum allocation of client crypto assets is set at 1%, with plans to increase this percentage in the future.

As these developments unfold, the broader financial world will be closely watching whether institutional sentiment begins to shift in the coming years. Despite the current lack of crypto enthusiasm among institutional traders, the evolving regulatory landscape and growing interest in digital platforms suggest that the crypto market may continue to gain traction.