JPMorgan reveals: Merely 8% of institutional traders have faith in blockchain
A recent survey conducted by JPMorgan among over 4,000 institutional traders reveals a concerning decline in confidence in blockchain technology. The results show that only 7% of respondents believe in the potential of blockchain as an asset in the next three years, marking a significant decrease of 72% from 2022 when 25% of respondents were optimistic about blockchain’s prospects. Despite this decline, blockchain still ranks third in terms of potential, with API integration (13%) and artificial intelligence/machine learning (61%) taking the lead.
The survey also looked into the attitudes towards cryptocurrencies and found that 78% of respondents have no plans to trade digital assets. However, 9% of respondents are already involved in crypto trading, and 12% are considering entering the crypto market within the next five years.
The data from Galaxy Digital in Q3 2023 suggests that the market for blockchain and crypto is still facing challenges. The number of completed deals and the total capital invested reached their lowest levels since Q4 2020. Analysts at Galaxy Digital acknowledge the tough venture capital fundraising environment but suggest that it may be improving.
Despite the challenges, there are some positive signs in the market. In Q3 2023, venture capitalists raised $1 billion, marking the first increase since declines began in Q3 2022. Additionally, there was an uptick in new fund launches, with 15 launches in Q3 compared to 12 in Q2. However, the median and average fund sizes have significantly decreased from their highs during the previous bull run.
Overall, the survey results indicate a loss of momentum for blockchain technology among institutional traders. Confidence has declined, but blockchain still holds a significant position in terms of potential. The crypto market also shows mixed sentiments, with a majority of respondents having no plans to trade digital assets, but a notable percentage already involved or considering entry. The market for blockchain and crypto continues to face challenges, but there are some positive signs of improvement.
