A recent JPMorgan survey claims that 71% of institutional traders have no plans to engage in crypto trading in 2025. At first glance, this might seem like a bearish signal for institutional adoption. However, when contrasted with increasing institutional investments in digital assets, this data raises questions about whether it truly represents the broader market trend—or if it’s simply misplaced FUD (fear, uncertainty, and doubt).
The JPMorgan Survey: A Narrow View of Institutional Sentiment?
The JPMorgan e-trading survey, conducted from Jan. 9 to 23, polled 4,200 institutional clients across 60 locations. It found that while 71% of respondents had no plans to trade crypto in 2025, this figure was actually an improvement from 78% in 2024. Additionally, the percentage of institutional traders planning to engage with crypto rose from previous years, with 16% intending to trade in 2025 and 13% already actively participating.
This data does not necessarily indicate a rejection of crypto by institutions. Rather, it suggests that a segment of institutional traders remains cautious—likely due to regulatory concerns, macroeconomic uncertainty, and historical volatility. However, when viewed in the context of broader institutional movements in crypto, the bearish implications of this survey start to weaken.
A Different Picture: Endowments and Foundations Are Moving In
Contrasting the JPMorgan survey, a recent Financial Times report highlights a surge in institutional investments in crypto. University endowments and major foundations are increasingly seeing crypto as an essential asset class. Some key examples include:
- University of Austin is raising a $5 million Bitcoin fund, the first of its kind among U.S. academic endowments.
- Emory University was the first college endowment to disclose holdings in Bitcoin exchange-traded funds (ETFs) in 2024.
- The Rockefeller Foundation, managing $4.8 billion in assets, is considering increasing exposure to crypto, with its CIO acknowledging the long-term potential of digital assets.
- Pantera Capital, a major crypto venture fund, has seen an eightfold increase in endowment and foundation clients since 2018.
This influx of capital into crypto funds and endowments suggests a growing institutional appetite, contradicting the idea that most institutions are steering clear of digital assets.
Strategic Adoption: Institutions Are Moving Beyond Speculation
The institutional embrace of crypto extends beyond simple investment. Companies are increasingly leveraging Bitcoin and digital assets as strategic financial tools. For instance:
- Strategy (formerly MicroStrategy) has pioneered using Bitcoin holdings as collateral for debt issuance, showcasing how companies can integrate crypto into corporate treasury strategies.
- The U.S. Government’s Evolving Stance: The SEC’s recent move to scale back its crypto enforcement unit signals a friendlier regulatory environment, and speculation is growing that the new sovereign wealth fund under Trump’s administration could include Bitcoin.
- State-Level Crypto Adoption: Ohio, New Hampshire, and North Dakota have proposed bills to create Bitcoin reserves, positioning states as key players in digital asset adoption.
These developments highlight a critical shift: Institutions are not just trading crypto—they are integrating it into their long-term financial and economic strategies.
The Bottom Line: Misleading Narratives and the Future of Institutional Crypto Adoption
While the JPMorgan survey data reflects some hesitation among institutional traders, it does not align with the broader institutional adoption trend we are witnessing. The narrative that institutions are avoiding crypto may be an oversimplification or even FUD aimed at influencing market sentiment.
With endowments, major foundations, and corporations finding innovative ways to leverage digital assets, institutional crypto adoption is not just growing—it is evolving. As regulatory clarity improves and new financial strategies emerge, institutional participation is set to accelerate, regardless of short-term survey results.
