Although the CEO of financial firm JP Morgan was one of the main detractors of Bitcoin and cryptocurrencies, he has already given in to their charm and now they will offer BTC funds to their clients.
August 6, 2021 3 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
Criptomonedas the boom in the last year and a half has generated endless controversy between supporters and detractors. While financier JP Morgan Chase launched some of the harshest criticism against Bitcoin , it has now changed its mind and, through its private banking unit, will offer its high-profile clients to invest in BTC funds .
On July 19, after years of attacking Bitcoin , JP Morgan became the first major US bank to offer investments in Bitcoin and other cryptocurrencies to all its clients, CriptoNoticias reported. The new Bitcoin fund , however, is limited to clients of JPMorgan Private Bank .
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Sources close to the financial company, cited by CoinDesk , revealed that the Bitcoin fund will be presented to clients as the “safest and cheapest” investment vehicle in BTC, among those available in private markets. They also leaked that it is passively managed and has no client investments yet, which could change soon because advisers were briefed on the fund just yesterday in a call with the bank.
To manage the Bitcoin fund , JP Morgan partnered with New York Digital Investment Group (NYDIG) , an institutional platform focused on custody and other Bitcoin services. Last February, NYDIG jointly filed with Morgan Stanley an application for a Bitcoin ETF with the United States Securities and Exchange Commission (SEC).
It should be remembered that Jamie Dimon , CEO of JP Morgan Chase , has been an outspoken opponent of Bitcoin . In 2017 he called the cryptocurrency "a fraud" and even threatened to fire any JP Morgan employee who exchanged Bitcoins, according to Bloomberg .
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However, Dimon has given in to the allure of cryptocurrency and has recently said that clients want to invest in Bitcoin and JPMorgan has a responsibility to facilitate crypto investments safely.
"I'm not a Bitcoin supporter, I don't really care about Bitcoin ," Dimon told the Wall Street Journal in May. "On the other hand, customers are interested and I don't tell them what to do ."
Thus, JP Morgan Chase follows in the footsteps of other financial institutions such as Goldman Sachs and Morgan Stanley , which also joined the Bitcoin fever and already offer different cryptocurrency investment schemes to their clients.
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