JPMorgan, the world’s largest investment bank, recently announced that institutional traders and investors are increasingly embracing artificial intelligence (AI) and machine learning (ML) as the future of trading. According to the survey of 4,010 institutional traders from 65 countries, even 61% believe that AI and ML will be the most influential technologies shaping trading in the next three years, including in crypto trading
AI in crypto trading
JPMorgan’s e-Trading Edit: Insights from the Inside survey shows a significant shift in perceptions of technologies that will dominate market trading. AI and ML topped the list, followed by application programming interface (API) integration, which was chosen as a top technology by 13% of respondents, according to Cointelegraph.
This growing importance of AI in trading naturally also impacts crypto trading. Perhaps in the coming years we will see more and more AI tools that allow crypto users to trade their favorite coins on a wide variety of trading platforms.
This represents notable growth in AI in the industry, as just two years ago this technology was considered important by 25% of respondents. This rise signals a rapidly growing confidence in AI’s potential to innovate the trading sector, and of course also coincides with the rise of AI in general.
Interestingly, the survey also showed growing skepticism about the role of other technologies in trading, including mobile trading apps and blockchain. Since 2022, these technologies have lost 18% and 23%, respectively, of investor selection as promising technologies for trading. So if you believe the JPMorgan report, blockchain has fallen behind AI.
The Crypto Challenge
As institutional investors increase their reliance on AI for trading purposes, their willingness to venture into cryptocurrency trading appears to be waning. According to the survey results, 78% of institutional traders have no plans to trade cryptocurrencies such as Bitcoin (BTC) or digital coins within the next five years. This percentage has increased compared to last year, when 72% said they had no interest in such assets. This is interesting considering that the proportion of respondents who are already trading or have started trading crypto increased slightly from 8% in 2023 to 9% in 2024.