Bitcoin Adoption Stalls as Institutional Traders Remain Wary, JPMorgan Finds

Despite a warming regulatory climate and vocal support from the highest office, institutional traders remain largely on the sidelines of the cryptocurrency market in 2025, a new survey from JPMorgan finds. The investment bank reports that 71% of institutional traders have no plans to trade crypto this year, a slight improvement from 78% in 2024 but still a strong signal that Wall Street isn’t ready to fully embrace digital assets.

Trump’s Pro-Crypto Push Fails to Sway Institutions

Since taking office, President Donald Trump has made Bitcoin and cryptocurrencies a central focus, signing an executive order promoting U.S. leadership in digital assets and floating plans for a strategic Bitcoin reserve. He’s even appointed noted crypto advocates to key regulatory posts, like pro-crypto Paul Atkins to lead the SEC.

Yet these overtures have so far failed to trigger a stampede of institutional money into crypto. JPMorgan found that just 16% of traders surveyed plan to enter the crypto market this year, while 13% are already active. Despite slight gains, these figures underscore the persistent caution among professional investors.

Volatility and Geopolitical Risks Loom Large

What’s holding institutions back? Crypto’s notorious volatility remains a key deterrent, especially amid rising geopolitical tensions. A majority of traders, 51%, cited inflation and tariff risks as the top market threat in 2025. Trump’s combative trade policies toward Canada, Mexico, China, and Europe have stoked fears of an all-out trade war, injecting further uncertainty into an already turbulent crypto market.

Institutions crave certainty. They’re not going to dive headlong into crypto when macro risks are flashing red and policymaking is erratic. Trump’s deregulatory agenda is appreciated, but it hasn’t fully counterbalanced the volatility and geopolitical wildcards.

– Thomas Lee, Head of Research at Fundstrat Global Advisors

Tentative Steps Toward Crypto Sovereignty

There are signs, however tentative, that the institutional calculus on crypto could be starting to shift. The JPMorgan survey coincides with reports that the U.S. government is exploring a crypto-inclusive sovereign wealth fund, overseen by noted Bitcoin supporters at the Treasury and Commerce Departments. Such a move could be a watershed in establishing crypto as a strategic asset class.

If Washington starts accumulating Bitcoin as a matter of policy, it would send an unmistakable signal that crypto is here to stay as a core plank of national economic strategy. That reassurance could be the catalyst skeptical institutions need to finally take the plunge and align with the emerging crypto-economy.

The Road Ahead for Institutional Crypto

The next months will be critical in determining whether 2025 marks an inflection point for institutional crypto adoption. As regulators hash out the details of a post-Trump framework for digital assets, and geopolitical headwinds continue to swirl, professional investors will be reading the tea leaves and calibrating their crypto strategies accordingly.

• Regulatory Clarity – Will U.S. agencies strike the right balance between innovation and oversight?
• Macro Risks – Can Bitcoin decouple from traditional assets and geopolitical turbulence?
• Institutional Infrastructure – Will secure custody, robust data feeds, and other institutional must-haves come online?

Ultimately, institutional engagement with crypto will hinge on a multitude of factors, from the macro to the technical. What’s clear is that the industry still has significant trust-building ahead to fully win over the institutional class. But with the right mix of regulatory engagement, technological maturation, and proof of staying power, crypto’s institutional moment may finally be on the not-too-distant horizon.