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JPMorgan Survey: Institutional Investors Losing Faith in Blockchain

Based on a study carried out by JPMorgan, it seems that faith in the potential of blockchain is waning among large companies, with only 7% currently believing in its value in 2024.

JPMorgan researchers surveyed 4,010 institutional traders from 65 countries and discovered that 61% of them anticipate that artificial intelligence (AI) and machine learning will have the most significant impact on trading and investing in the next three years. This figure represents an increase of 8% compared to the previous year.

When it comes to blockchain and distributed ledger technology (DLT), their significance for major corporations has dropped significantly to 7%. In 2023, 12% of investors held belief in the potential of blockchain, whereas in 2022, that figure stood at 25%. However, participants who trade commodities expect quantum computing to gain popularity over other asset classes. Despite the limited number of investors who have confidence in blockchain, the technology still ranks third in terms of prospects, after APIs and artificial intelligence.

The study also revealed that 78% of respondents have no plans to engage in cryptocurrency trading, while 9% are already active in this market. Furthermore, 12% of survey participants expressed an interest in entering the cryptocurrency market within the next five years.

Notably, JPMorgan analysts recently observed a decline in investor interest in spot Bitcoin exchange-traded funds (ETFs). They suggested that this trend may be attributed to a decrease in demand for the American crypto exchange Coinbase.