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Institutional Traders Prefer AI over Blockchain: JPMorgan

JPMorgan commissioned the study to determine the potential impact artificial intelligence (AI) technology would have on the trading industry in the next three years.


There is a possibility that technology based on artificial intelligence (AI) would progressively take over the interests of institutional traders.

JPMorgan, a global leader in banking and financial services, commissioned a study to determine the potential impact artificial intelligence (AI) technology would have on the trading industry in the next three years.

JPMorgan conducted (1) its customary survey in January, gathering responses from 835 institutional traders in 60 different markets worldwide.

During regular business, it will publish various publications that provide hints regarding "upcoming trends and the most highly disputed themes" in and around crypto.

However, a staggering 72% of traders who were polled stated that they have no interest in trading crypto assets in the future. And of those respondents, just 14% disclosed that they want to trade crypto currency within the next five years.

Whopping 72% Traders have no plan in trading crypto or digital coins as per the survey. Figures from JPMorgan (1.1)

AI is Prefered over Blockchain?

According to an analysis conducted by JPMorgan, artificial intelligence is favored 4 times more than blockchain or distributed ledger technologies. However, that shouldn't come as much of a shock to anyone.

Because there does not appear to be any end in sight for the prolonged bear market, this is the result.

To do this, customers must now focus their attention on AI technology such as ChatGPT, which will generate a buzz in the business world about it.

Meanwhile, a survey conducted the year before asked respondents what they thought would be most important in the future. Blockchain technology and artificial intelligence technology are tied for second place.

The pair received a score of 25%, placing them in second place behind mobile trading applications, which were chosen by 29% of respondents.

2022 data for the preference of the Institutional Traders. There is a significant difference as compared to 2023. Graph Source: JPMorgan Survey (2.1)

However, a lot has occurred over the past year, and now artificial intelligence surpasses every other crucial technological advancement.

At this time, AI has a citation rate of 53%, which places it far ahead of API integration, which only has a rate of 14%, and blockchain, which only has a rate of 12%.

Preference of Institutional traders in next three years as per the survey. AI has gained a significant increase as compared to other forms of trading. Source: JPMorgan (3.1)

It's interesting to note that just 7% of people still believe mobile applications will significantly influence trade in the years to come.

It is well known that JPMorgan publishes several research studies on crypto assets from time to time.

The company issued a warning not too long ago, stating that the most prominent cryptocurrencies, Bitcoin & Ethereum, might face some difficulty in the days and weeks ahead.

In addition, it also highlighted that tokens like Solana, Terra, and others are beginning to skyrocket in popularity within decentralized finance & non-fungible tokens. JPMorgan also revealed that Coinbase might profit from the impending Ethereum Shanghai upgrade.