In a recent revelation, JP Morgan’s e-trading survey has reflected the sentiments of institutional investors worldwide regarding the future of trading technology, crypto, and AI.
This is the report’s seventh year, and the survey involved 835 institutional traders in 60 global markets. The annual survey assesses trader sentiment across several asset classes and aims to uncover “upcoming trends and the most hotly debated topics.”
JP Morgan concluded that 53% of the institutional investors surveyed believe that artificial intelligence (AI) and machine learning will be the most influential technology in shaping the future of trading over the next three years, a significant increase from 25% the previous year.
This made AI the clear winner, four times more often cited than blockchain and distributed ledger technology (DLT), which landed in third place with 12% of the vote. API integration was second with 14%, and mobile trading applications fell to 7% straight from the last year with 29%.
Despite this, the report noted that participants predict that 64% of their activity will be in the crypto space by 2024. In 2023, traders expect to face some challenges. The report cited recession risk (30%) and inflation (26%) as the top potential developments that could impact markets, followed by geopolitical conflicts in third place with 19%.
Several JP Morgan studies and reports related to digital and crypto assets have been conducted. The firm has predicted “significant challenges” for Bitcoin and Ethereum and also noted that Solana and other tokens are gaining a grip in decentralized finance (DeFi) and non-fungible tokens (NFTs).
The firm anticipates that the upcoming and most awaited Shanghai update for Ethereum, which is scheduled to launch in March, “could usher in a new era of staking.”
JP Morgan is one of the leading investment firms and has been taking cautious steps toward digital assets. However, Jamie Dimon, its CEO, has been an outspoken critic of Bitcoin for the longest.
Very recently, Dimon was asked about his most recent position on cryptocurrency during a segment on CNBC. In response, he questioned why the panelists were wasting “any breath” talking about the issue before calling the leading digital asset a “hyped-up fraud” and a “pet rock.” In May 2021, he advised people to keep their distance from Crypto, and six months later, the crypto market surged more than 100% to a new all-time high.
Altogether the e-Trading edit report highlights the increasing significance of AI and machine learning in shaping the future of trading, while traders remain cautious about the future of crypto. Regardless of the challenges, the report notes that traders are unanimous in their belief that electronic trading will continue to grow.
The growth of AI is a widely renowned topic. A few days back, Todayq News reported a survey by KPMG, one of the Big Four accounting organizations; blockchain has emerged as the fifth most preferred technology among leading Chinese fintech firms, with a share of 33% as of 2022. Blockchain technology ranked behind big data, which had a share of 76%, followed by artificial intelligence at 68%, while cloud computing was third, accounting for over 41%, followed by knowledge graph at fourth spot covering 34%.
Recently, Bill Gates claimed that Web3 and the metaverse are not “revolutionary” technologies, which suggests that their significance does not persuade him. In response to a query, the business tycoon said, “AI is the big one.” The query was on what modern technology has the promise that the internet did in 2000. Although he doesn’t think Web3 is even that significant or that the metaverse alone was revolutionary, he does believe that AI is fairly revolutionary.