The head of crypto and financial markets at Northern Trust claims that institutional investors lost interest in cryptocurrency after 2022 and that they haven’t yet regained it, despite this year’s upswing.
Earlier of last year around May 2023, At the Digital Assets Week conference in San Francisco, Justin Chapman told CNBC’s “Crypto World” that while institutions are now more interested in the blockchain technology that powers cryptocurrencies, his company “has capabilities” in place in case client interest in crypto assets increases. “Just after March the digital market went off a cliff… the client interest has definitely gone off the same cliff in terms of institutional interest in in cryptocurrencies,” he stated.
78% of institutional traders show no interest in cryptocurrencies, according to JP Morgan. The fascinating results, in fact, come from a recently published 2024 investigation. JP Morgan spoke with more than 4,000 people in the financial markets during this investigation.
Even while the number of businesses planning to use cryptocurrencies has increased, many are still averse to sharing what they own. Furthermore, compared to the figures from 2023, the percentage of traders who are not interested in interacting with cryptocurrencies has increased.
Crypto Fails to Captivate Institutional Traders
Leaders from major financial institutions convened at the San Francisco conference with a palpable enthusiasm for blockchain technology, particularly its capacity to tokenize real-world assets such as gold for clients. Commenting on this trend, Chapman noted the evolution of the technology and its increasing support from market participants.
Following a turbulent 2022 in which it lost 64%, Bitcoin has increased by about 75% this year. The start of the New Year’s trading session saw historically low levels of volatility. But the U.S. regulatory moves clouded the industry, and the banking crisis drove up the price of bitcoin, bringing volatility back to the market.
Although bitcoin has not been able to break above the $30,000 barrier, investors still believe in its long-term upward trajectory. Many people believed that 2024 will be the year of bitcoin, especially since Spot Bitcoin ETFs would soon be approved. But this anticipated upsurge has not yet occurred. Even though the value of bitcoin has surpassed $50,000, recent studies show that the enthusiastic acceptance anticipated has not occurred.
While appreciating Bitcoin’s resilience, the market is nevertheless cautiously hopeful about its near-term prospects. The disparity between what people assume and what really occurs highlights the intricate processes that are forming the bitcoin environment.