JPMorgan Provides Private BTC Fund for Wealthy Clients Despite CEO’s Disinterest in Crypto

JPMorgan Chase & Co (NYSE: JPM) now offers its private banking clients an opportunity to invest in an in-house BTC Fund. The multinational investment bank is making this available in partnership with New York Digital Investment Group (NYDIG), a leading digital investment group. A subsidiary of Stone Ridge alternative asset managers, the NYDIG offers a host of activities which includes asset management and execution within a secure framework. 

The leading bank only made this announcement yesterday in a conference call to advisers. So far, JPMorgan has not received any investments from its target clients into the fund.

According to JPMorgan, the BTC Fund will be presented in “the safest and cheapest BTC investment vehicles available on the private markets”. In addition, the private fund will seamlessly ease into a BTC exchange-traded fund down the line. The bank already has plans in motion for such a product but does not currently have an ETF bid before the Securities and Exchange Commission (SEC). However, NYDIG has filed one, which is now under review.

JPMorgan CEO Is Anti-Crypto

According to JPMorgan, its recent developments do not change the skepticism the bank harbors towards cryptocurrencies. In the bank’s opinion, it is solely a business move designed to cater to the growing interests of its clients to invest in crypto. When media reports concerning the news first came out in May, Company CEO Jamie Dimon made his sentiments known shortly after that. He said: “I don’t care about BTC. I have no interest in it. On the other hand, clients are interested, and I don’t tell clients what to do.” 

In the past, Dimon has even shared stronger sentiments concerning digital currencies. Back in May, Dimon cautioned investors about BTC and the entire digital currency industry. Speaking in congressional testimony to the United States House Financial Services Committee, Dimon however said that the bank will offer crypto services to clients and customers, regardless of his personal opinion. He said:

“My own personal advice to people is: stay away from it. That does not mean the clients doen’t want it. This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it.”

JPMorgan BTC Fund Marks Growing Trend in the Financial Industry

Despite what its CEO or thinks about digital currencies, JPMorgan continues to enter the world of cryptocurrencies. Last month, the company began to allow its financial advisors to assist its wealth management clients with crypto investments. The JPMorgan Private Bank provides services that include access to BTC funds, such as GBTC, through a JPMorgan brokerage account. Also, JPMorgan added crypto exchanges Coinbase and Gemini Trust Co. as banking clients last year.

JPMorgan’s recent move reflects an increasing number of traditional financial institutions making moves into the world of digital currencies. There has been a surge in client demand in recent times and an increase in the value of the tokens. In addition, other financial institutions like Morgan Stanley and DBS Group Holdings Limited are also getting into crypto.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.