Home
News- GrayScale, Osprey Funds, and NYDIG are among the six crypto funds currently available through JPMorgan
- Over the last three weeks, JPMorgan Chase quietly opened up access to six cryptocurrency funds
- Private clients of the bank will now have access to a new NYDIG Bitcoin fund
GrayScale, Osprey Funds, and NYDIG are among the six crypto funds currently available through JPMorgan. Over the last three weeks, JPMorgan Chase quietly opened up access to six crypto funds as part of its effort to provide crypto exposure to a wide range of clients. The bank’s private clients will now have access to a new Bitcoin fund launched by crypto investment firm New York Digital Investment Group, as part of the newest step (NYDIG).
Early warning signs
Dimon restated his opposition to bitcoin in May, while his bank was in advanced talks with crypto businesses to offer the range of assets. Clients are intrigued, he said, and he doesn’t tell them what to do. JPMorgan’s wealth management business and NYDIG representatives declined to comment for this story.
According to those familiar with the process, financial advisors were allowed to begin placing private bank clients into a new bitcoin fund launched with crypto startup NYDIG on Thursday. According to the persons, the fund is almost identical to one offered by NYDIG to Morgan Stanley clients.
Stone Ridge Asset Management owns NYDIG, and the Stone Ridge Bitcoin Strategy Fund provides exposure to Bitcoin through futures markets. The NYDIG fund joins Grayscale Investments’ Grayscale Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, and Ethereum Classic Trust, as well as the Osprey Bitcoin Trust, which the bank offered access to last month.
While the traditional financial institution has made a huge step forward by giving crypto exposure through six distinct funds, it is apparently treading carefully with its new digital-asset services. JPMorgan advisors are not authorized to actively advocate crypto funds, according to unnamed sources published by Business Insider, and can only perform transactions at the client’s request.
The Grayscale and Osprey Funds are available to all users of the company’s wealth management platforms, including its self-directed Chase trading app, however, the NYDIG Fund is solely available to private banking clients.
The rollout is muted
Nonetheless, the products’ slow launch this summer reflects the bank’s skepticism with bitcoin. After CEO Jamie Dimon referred to bitcoin as a fraud in 2017, the investment banking behemoth has had a tumultuous relationship with the digital currency. Despite aggressively seeking to offer exposure to the sector, Goldman Sachs analysts appear to be grappling with some of the same concerns.
Jeff Currie, Goldman Sachs’ global head of commodities research, defined Bitcoin as a risk-on asset similar to copper in June. The bank’s analysts produced a cryptoanalysis the same month, concluding that Bitcoin is neither a long-term store of value nor an investable asset class.
Goldman Sachs presently offers cryptocurrency services through a derivatives trading desk and a recently launched Bitcoin futures trading platform. In late July, the company also filed for a DeFi-based ETF.
According to reports on the product, the NYDIG fund is being touted as one of the least expensive and safest methods to obtain bitcoin exposure. One of the persons said the fund is also being advertised as having the ability to be easily rolled into an ETF in the future if regulatory approval is granted.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
