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The new move by JPMorgan represents a turnaround for the investment bank as its CEO Jamie Dimon previously called Bitcoin a dangerous fraud.
Investment banking company JPMorgan Chase & Co (NYSE: JPM) is rolling out a Bitcoin Fund for clients. Upon a successful rollout, JPMorgan will become the first and largest bank in the US to offer such a service. Now, JPMorgan has cryptocurrency as an asset class, and customers can now invest in the digital asset.
JPMorgan’s Client to Invest in Bitcoin Fund
Speaking on JPMorgan’s new development, two sources told CoinDesk that JPMorgan could begin the Bitcoin Fund as soon as the coming summer. Another source revealed that the leading technology and financial services firm dedicated to Bitcoin NYDIG would be the custody provider of the Bitcoin Fund. Multiple sources also told CoinDesk that the bank’s Bitcoin Fund would be actively managed.
Revealing further, a source said that the JPMorgan Fund would be available to only the company’s private wealth clients.
The new move by JPMorgan represents a turnaround for the investment bank as its CEO Jamie Dimon once called Bitcoin a dangerous fraud. At the time in 2017, Dimon was a Bitcoin bear, and he threatened to “fire in a second” any trader who invested in the king coin. In an interview with CNBC, the CEO said he could care less about BTC. While speaking, he warned:
“If you’re stupid enough to buy it, you’ll pay for it one day.”
Regardless of Dimon’s position on Bitcoin, other JPMorgan executives are open-minded to cryptocurrency.
In February, the company’s co-president Daniel Pinto said that an increase in clients’ demand for crypto might force JPMorgan’s view on Bitcoin. Pinto declared:
“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn’t there yet, but I’m sure it will be at some point.”
JPMorgan Evolves in Crypto and Blockchain Treatment
Although the client-focused Bitcoin Fund is new, JPMorgan’s business segments have gradually shifted their perception of crypto and blockchain. Research analysts at the banking giant have been delivering reports on Bitcoin’s price. Recently, JPMorgan said that Bitcoin’s price will compete with gold and fetch a long-term price of $130,000.
At press time, BTC is up 7.21% to $53,360.
In addition, JPMorgan’s Onyx division is facilitating interbank payments through blockchain technology. Last month, JPMorgan opened 34 positions in the blockchain space.
JPMorgan stock is currently trading at $152.11, a 1.28% gain over its previous close of $150.19. According to the company’s performance collated by MarketWatch, the company’s stock has climbed nearly 61% in the last twelve months. Additionally, the bank’s stock has increased 19.73% in its year-to-date record. In the last three months, the banking giant has surged over 15%. Despite the recorded gains, JPMorgan stock has dropped 0.35% over the past month and declined 0.33% in the last five days.