The crypto market bull run has led to an increased institutional interest in crypto-assets. However, a recent survey from American bank JPMorgan reveals that the current surge from institutions is not as widespread as initially thought.
78% of Institutions have no interest in cryptocurrencies
US news outlet business insider revealed this development in a report on Wednesday. According to the report, JPMorgan surveyed more than 3,4000 investors representing over 1,500 institutions globally.
The report discovered that 89% of respondents revealed that their firm does not trade or invest in cryptocurrencies. Simultaneously, 11% of the respondents said their firm has significant trades or investments in cryptocurrencies.
78% of investors in companies that do not trade crypto-assets said their firms are unlikely to invest or trade in the future. In contrast, 22% stated that their firms could consider it in the future.
The survey also revealed the sentiments among institutional investors regarding cryptocurrencies. When quizzed on their opinion on cryptocurrencies, 58% of investors believe it is here to stay, while 21% said it is a temporary scheme. Only 7% believe that it is an important asset, and 14% said it is an asset to avoid.
Also, almost all investors (98%) that partook in the survey believe that fraud is prevalent in the crypto industry. This shows that the crypto industry is still being viewed with suspicion by traditional financial institutions.
JPMorgan survey comes after another study released by analytical company Blind revealed an exciting development. The survey which questioned 1,800 tech professionals found that 57% currently own crypto-assets. The respondents included employees in JPMorgan and other top firms like Amazon, Twitter, and Tesla.
Institutions interest continues to grow
Despite the JPMorgan survey result, recent developments show that institutions are taking an interest in cryptocurrencies. Several Wall Street firms and hedge funds have hinted about adding cryptocurrencies to their portfolio.
Financial institutions are looking to keep customers who have been drawn to bitcoin’s rising price in recent months. With America’s oldest bank BNY Mellon declaring in February plans to launch a crypto custodial service, banks are not left behind.
