JPMorgan to launch bitcoin fund for wealthy clients

JPMorgan to launch bitcoin fund for wealthy clients

JPMorgan may be developing a private BTC fund, despite its CEO’s ongoing opposition to the top cryptocurrency

A private bitcoin fund is reportedly currently in the pipeline

at JPMorgan Chase & Co.

, although its CEO Jamie Dimon has never shown interest in the apex cryptocurrency in the past.

What happened
The New York-based bank began offering bitcoin funds to its clients for the first time this week, according to information provided by CoinDesk.

A passively managed fund offered in partnership with financial services firm NYDIG has yet to receive investment from clients, but with the recent upbringing of advisors, that will change, people familiar with the matter told CoinDesk.

The private equity fund could act as a bridge to a publicly traded bitcoin fund once the U.S. Securities and Exchange Commission (SEC) approves the type of product, a source at the crypto publication revealed.

NYDIG has filed with the SEC an ETF that will hold bitcoin. The Blockchain Association’s Karen Smith said it’s likely that a bitcoin ETF won’t be approved anytime soon.

Shares of JPMorgan Chase closed down 1.08% at $151.24 in regular trading on Wednesday and were up 0.11% in after-hours trading. At press time, BTC was trading up 3.74% at $39,411.67.

because it matters
Dimon has always been against Bitcoin. In 2014, he claimed Bitcoin was a “terrible store of value,” according to MarketWatch.

A year later, he pointed out that BTC would not survive, and in 2017 called the cryptocurrency a fraud, although he later regretted his words.

In 2018, he declared: “The truth is, I’m dismissive of Bitcoin.”

In 2021, Dimon said he is still not a supporter of Bitcoin, noting: “I don’t care about Bitcoin. I’m not interested in him. On the other hand, customers are interested and I’m not going to tell them what to do.”

In the case of large bank clients, they can access Bitcoin through their brokerage account and store it in Grayscale Bitcoin Trust. GBTC 8.33%

etc., according to Business Insider.

As for the new bitcoin fund, it’s limited to JPMorgan Chase Private Bank clients, according to CoinDesk.​

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