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Institutional Traders & Crypto: Why 71% Are Staying on the Sidelines – JPMorgan Survey Explained
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Feb 6, 2025
In this video, we dive deep into JPMorgan’s latest survey revealing that over 70% of institutional traders have no plans to trade cryptocurrencies in 2025. We break down the key findings, including the slight shift from 78% in 2024 to 71% now, and explore what this means for the broader crypto market. Discover why, despite an improving regulatory environment and growing digital trading trends, many institutional players remain cautious due to concerns over market volatility, inflation, tariffs, and geopolitical tensions. Join us as we analyze: • The conservative stance of institutional investors • The rising trend of digital/e‑trading activity • The impact of regulatory changes and market challenges • Expert insights on future crypto adoption by big players Don’t forget to like, comment, and subscribe for more in-depth financial and market insights! #AllCoinSeller
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0:00
welcome back to the channel everyone
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today we're diving into a fascinating
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Insight from JP Morgan's latest survey a
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survey that reveals a surprising fact
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over 70% of institutional Traders have
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no plans to trade cryptocurrencies this
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year in today's video we'll break down
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what this means why these big players
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remain cautious and how Market factors
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like inflation tariffs and volatility
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are shaping their strategies if you're
0:26
new here hit that subscribe button and
0:28
ring the bell so you won't miss out on
0:30
our weekly market analysis JP Morgan
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recently conducted an extensive e
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trading survey targeting institutional
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Traders around the world the results are
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intriguing a whopping 71% of
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institutional Traders say they have no
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plans to trade crypto or digital coins
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this year this figure marks a slight
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decrease from 78% in the previous year
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indicating a marginally more open
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sentiment but still the vast majority
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are staying on the sidelines even though
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six 15% of Traders plan to start trading
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cryptocurrencies this year and an
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additional 133% are already actively
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trading the numbers suggest that the
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institutional World remains generally
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wary of crypto markets so what's behind
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this cautious approach one reason for
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this conservatism is the overall
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uncertainty in the market many
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institutional Traders view crypto as a
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highly volatile asset class let's talk
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numbers while some are slowly dipping
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their toes in with 16% planning to trade
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and 133% already trading the majority
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aren't convinced that crypto fits into
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their risk management framework yet
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institutional investors typically manage
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enormous portfolios and even a slight
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misstep in a volatile market like crypto
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can lead to significant losses it's not
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just about the price swings it's about
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managing liquidity adhering to strict
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regulatory Frameworks and protecting
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their clients funds while the appetite
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for crypto trading remains low one
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notable trend from the survey is that
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100% of respondents plan to increase
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their online or electronic trading
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activity this is especially True For
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Less liquid assets suggesting that while
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crypto might not be their top Focus
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there is an undeniable move toward
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digital trading platforms overall this
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digital transformation is reshaping how
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traditional financial institutions
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operate even if their interest in crypto
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specifically is cautious it appears that
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institutions are exploring digital
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trading methods in a broader sense which
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might eventually trickle down to more
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active crypto participation in the
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future interestingly this hesitancy
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comes at a time when the regulatory
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landscape for digital Assets in the
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United States is seemingly improving
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recent policy adjustments and changes at
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Major Financial agencies have lowered
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barriers and some key developments
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include the US Securities and Exchange
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Commission scaling back its crypto
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enforcement unit executive actions from
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the previous administration such as
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directives to create Sovereign wealth
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funds funds with proc crypto elements
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actions endorsed by figures like
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treasury secretary Scott bessent and
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Commerce Secretary Howard lutnick
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despite these positive regulatory moves
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institutional Traders remain cautious
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Global head of digital markets at J Pim
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Morgan eddie1 has noted that while new
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policies are in place to support market
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growth the risk profile of crypto
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trading hasn't changed enough for many
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large institutions essentially while the
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door is slightly a jar most Traders
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aren't yet stepping in side let's talk
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about the market challenges that are top
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of mind for institutional traders in
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2025 the survey indicates that inflation
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and tariffs are viewed as major
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influences in fact 51% of participants
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see these as the core risks affecting
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market performance in the coming year
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geopolitical tensions add another layer
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of uncertainty with escalating conflicts
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and global trade issues further
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dampening enthusiasm Market volatility
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is another major concern the survey
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showed that 41% of Traders identify
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volatility as their biggest challenge a
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sharp rise from 28% last year cut to a
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dynamic graphic showing a volatility
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index Rising these issues create an
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environment where even a strong
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regulatory framework may not be enough
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to persuade institutional traders to
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take on the extra risk associated with
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cryptocurrencies essentially the
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unpredictability of broader market
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conditions is a huge deterrent so what
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does all this mean for the future of of
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institutional crypto trading while the
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current sentiment is largely
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conservative the slight shift from 78%
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saying no in 2024 to 71% in 2025
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suggests a gradual opening up even
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though the majority are holding back the
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growing numbers of Traders planning to
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enter the market could signal a slow but
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steady change as electronic and online
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trading platforms become more
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sophisticated institutions might gain
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more confidence in managing the risks
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associated with digital assets future
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regulatory clarifications coupled with
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improvements in Market stability could
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gradually tip the scales in favor of
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increased institutional participation in
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crypto trading in a nutshell while the
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cautious stance prevails today we might
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see institutional players slowly
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increasing their crypto exposure as
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market conditions evolve and risk
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management tools improve Market experts
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like Dr Teel JP Morgan's Global co-head
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of macro sales aren't surprised by the
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focus on tariffs and inflation she
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remarked that these factors are expected
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to remain Central in the coming year
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when institutional Traders see these
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challenges it naturally dampens their
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appetite for higher risk assets like
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cryptocurrencies it does not surprise me
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that 51% of the participants thought
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that tariffs and inflation will be two
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of the central risks for the market this
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expert Insight reinforces the idea that
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while crypto might be booming in retail
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circles the institutional world is
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looking at the macro pict picture very
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carefully they're balancing the
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potential upside of digital assets with
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a rigorous evaluation of Market risks to
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sum up JP Morgan's survey gives us a
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snapshot of the current institutional
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mindset even with an improving
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regulatory environment and growing
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digital trading capabilities over 70% of
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institutional Traders still aren't ready
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to jump into crypto trading their focus
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remains on managing risks posed by
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inflation tariffs geopolitical tensions
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and heightened Market volatility
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what does this mean for the crypto
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market for now institutional adoption
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appears to be progressing very slowly
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however as digital trading becomes more
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refined and if Market stability improves
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we might see more institutions gradually
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stepping in in the meantime retail
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investors and smaller players may
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continue to drive much of the current
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crypto momentum thanks for watching what
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do you think about this cautious stance
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will institutional players eventually
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Embrace crypto trading or will Market
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risks keep them on the sidelines drop
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your thoughts in the comments below and
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if you enjoyed this video give us a like
7:06
and share it with your friends don't
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forget to subscribe for more in-depth
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Market insights and financial news until
7:12
next time stay informed and trade smart
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