JP Morgan has issued the newest edition of its e-Trading Edit report. It exposes the views of institutional investors worldwide on the future of trading technology, cryptocurrency, and artificial intelligence.
The seventh annual study was based on a January survey of 835 institutional traders across 60 worldwide marketplaces. The yearly poll gauges trader mood across a variety of asset types. Its goal is to identify “upcoming trends and the most fiercely contested subjects.”
JP Morgan estimated that artificial intelligence (AI) and machine learning would be the most influential technologies in determining the future of trade over the next three years, a considerable rise from 25% the previous year.
This makes AI the apparent victor, with four times the number of citations as blockchain and distributed ledger technology (DLT), which finished third with 12% of the vote. API integration came in second with 14%, while mobile trading applications decreased to 7% from 29% last year.
The e-Trading Edit study also examined the potential of cryptocurrency. However, 72% of institutional investors said they have no plans to trade cryptocurrency or digital currencies.
Despite this, participants expect that 64% of their activity will be in the crypto area by 2024, according to the research.
Traders anticipate some difficulties in 2023. The top possible market changes identified were recession risk (30%) and inflation (26%). With 19%, the geopolitical conflict came in third.
This analysis follows several JP Morgan studies and research on cryptocurrency and digital assets. Bitcoin and Ethereum will face “major obstacles,” according to the business. However, it was also mentioned that Solana and other tokens are gaining popularity in decentralized finance (DeFi) and non-fungible tokens (NFTs).
Last month, JP Morgan investigated the potential for top cryptocurrency exchange Coinbase. According to the business, the next Shanghai upgrade for Ethereum “may herald in a new age of staking.”
Overall, the e-Trading Edit study emphasizes the growing importance of AI and machine learning in defining the future of trading, but traders remain skeptical of the end of cryptocurrency. However, regardless of the hurdles ahead, traders are unified in their conviction that electronic trading will continue to develop, according to the survey.
