Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
JPMorgan’s assessment revealed that AI was preferred more than four times over blockchain and distributed ledger technology.
Artificial intelligence (AI) technology may gradually be taking over the interests of institutional traders. According to a recent survey carried out by financial services behemoth JPMorgan, AI technology could shape the entire trading space in as little as three years from now.
In January, JPMorgan in its usual manner surveyed a total of 835 institutional traders from across 60 global markets. It usually releases various reports to hint at “upcoming trends and the most hotly debated topics,” in and around crypto.
However, of the traders surveyed, a whopping 72% will rather not have anything to do with crypto assets. And only 14% of them revealed that they have plans to trade crypto within five years.
Why AI for Institutional Traders?
JPMorgan’s assessment revealed that AI was preferred four times more than blockchain and distributed ledger technology. But that does not exactly come as a surprise. This is because there seems to be no end in sight for the ongoing bear market.
For this, consumers now have to shift their attention to AI technology such as ChatGPT, creating a commercial buzz around it.
Meanwhile, last year’s assessment of what respondents believed holds the key to the future, placed blockchain technology and AI technology in joint second position. The duo scored 25%, coming in behind mobile trading applications that saw 29% of the respondents choose them.
However, a lot has happened over the past year and now, AI dwarfs every other major technology. AI currently has a 53% citation rate and is far ahead of API integration which holds 14%, and blockchain with 12%. Interestingly, only 7% still believe that mobile apps will have a major impact on trading in the coming years.
JPMorgan is known to release several study reports on crypto assets from time to time. Recently, the firm warned that leading cryptocurrencies Bitcoin and Ethereum would experience some hardship in the days ahead. It also highlighted how Solana, Terra, and other tokens are beginning to gain massive popularity in the decentralized finance (DeFi) and non-fungible tokens (NFTs) spaces. JPMorgan also reported that Coinbase might benefit from the upcoming Ethereum Shanghai update.