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- JPMorgan Chase, the never-bitcoin mega-bank, has transformed itself
- The Bank started pitching its Private Bank clients on an in-house bitcoin fund
- JPMorgan Chase became a genuine player in the digital assets space.
JPMorgan has started its passive bitcoin fund in partnership with NYDIG for its premium clients. CEO Jamie Dimon had once said that he was not a Bitcoin supporter. Still, if the clients are interested, he will fulfill their demands, and he has no right to come between their decisions.
For the first time this week, JPMorgan Chase, the never-bitcoin mega-bank, has transformed itself and started pitching its Private Bank clients on an in-house bitcoin (BTC, +3.41%) fund. As a result, JPMorgan Chase became a genuine player in the digital assets space.
The fund is passively managed in partnership with bitcoin powerhouse NYDIG
According to sources familiar with the affairs, the fund is passively managed and offered in partnership with bitcoin powerhouse NYDIG. It will not have any investment from the clients. However, this arrangement is not permanent and will change soon. Advisers joined only yesterday in a launch call with the Bank.
Funds for premium clients as the safest and cheapest bitcoin
Sources revealed that the funds would be presented to premium clients as the safest and cheapest bitcoin investment vehicle available on the private markets. The latest move is in line with CEO Jamie Dimon, one of the fiercest critics of Bitcoin. Jamie always had a disdain for internet money and made no bones about his skepticism for what he called spooky internet money. Jamie, however, was quick to add that if clients asked for Bitcoin, it is J.P.Morgan’s responsibility to deliver it safely.
CEO Jamie Dimon did not care for Bitcoin
Dimon had told a well-known daily that he was never a Bitcoin supporter and did not care for the number one cryptocoin. However, he is committed to providing services to the Bank’s clients, and if the clients want it, the Bank will give it. A source said that the private fund would also port over to a bitcoin exchange-traded fund once that product clears the Securities and Exchange Commission.
Numerous other firms have a bitcoin ETF bid before the SEC, but JPMorgan still does not have one. Grayscale, a sister company to CoinDesk, is expected to change its high-fee Grayscale Bitcoin Trust product to an ETF once the time is right. NYDIG, an offshoot of BTC, also has applied for a bitcoin ETF application, which the SEC has begun reviewing.
Major fund management firms who are clients to JPMorgan have been provided access to bitcoin funds such as GBTC through a JPMorgan brokerage account, according to Business Insider. However, the new bitcoin fund is limited to customers of JPMorgan Private Bank.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
