Clients of JPMorgan Chase will now be able to invest in crypto through the bank's own Bitcoin trading vehicle.
The news seems a bit surprising, as Jamie Dimon, the CEO of the global financial entity, has expressed open disbelief in crypto assets in the past. However, the new Bitcoin fund for private clients seems to have been launched in response to the growing demand from JPMorgan's most discerning customers for crypto trading.
A recent report indicates that the fund will be passively managed and offered through NYDIG, one of the largest bitcoin exchanges.
This spring, the fund was announced as one of the safest and cheapest investment vehicles for Bitcoin on the private market.
All clients of the bank's wealth management department now have access to Bitcoin funds, such as GBTC, through this service.
The new JP Morgan private fund will transition soon to an ETF, taking the lead from other organizations that are awaiting SEC approval for their ETF bids.
Jamie Dimon, the leader of JPMorgan Chase, has not been very enthusiastic about Bitcoin, as mentioned earlier. According to a statement he made in May 2021,
"I don't have a lot of interest in Bitcoin...I am not interested in it at all. As for clients, I don't dictate what they should do, they show interest.”
Since 2017, when he called Bitcoin a fraud, his stance had shifted toward the crypto asset.
The Bitcoin mania has even been compared to the Dutch Tulip Bulb bubble, which will go down in history as one of the most infamous asset bubbles and crashes of all time.
A definite change by the world's most valuable bank occurred last year, spurred by PayPal and Square adopting Bitcoin into their respective offerings.
As part of its new bullish stance towards Bitcoin, JPMorgan's Global Markets Strategy team also studied demographic trends that showed that younger generations were opting to invest in bitcoin instead of gold.
Analysts believe that Bitcoin will improve in the long run due to its utility as a payment mechanism compared with gold.