The US multinational investment bank JPMorgan Chase & Co, which is skeptical about the possibility of investing in BTC, admitted that most JPMorgan clients see the primary cryptocurrency as an asset class and the demand for exposure has growed significantly.
Growing demand for BTC
In a recent interview with Bloomberg, Mary Callahan Erdoes, JPMorgan’s director of asset and asset management, noted that most of the company’s clients consider BTC to be an asset class.
Erdoes said the giant bank will continue to provide its customers with cryptocurrency services to meet growing demand and maintain its client base. “Many of our clients say: It’s an asset class and I want to invest, and our job is to help them put their money where they want to invest,” she said.
Interestingly, at the beginning of February, Daniel Pinto, co-chairman of the bank and COO, stated that there was no demand for BTC at that time. Now, however, JPMorgan’s clients have a relentless desire to invest in cryptocurrency, and the US banking giant is trying to satisfy it.
However, Erdoes pointed out that the institution still has reservations about the decision to categorize cryptocurrencies as an asset class, given that they are extremely volatile.
“It is a very personal thing. We do not have BTC as an asset class and time will tell if it is a store of value. But the volatility you see today needs to ease over time. “
In the past, JPMorgan never liked cryptocurrencies, especially BTC. In early 2017, CEO Jamie Dimon blew up the cryptocurrency, calling it a scam and even threatening to fire any of his employees who do business with him.
A little later, however, he changed his mind, regretting calling the cryptocurrency a fraud, and praising blockchain as a revolutionary technology.
The company has since become a little friendlier to cryptocurrencies, and even launched its native cryptocurrency as early as 2020. Earlier this year, JPMorgan began hiring Etherea and blockchain developers as it continued to explore the technology.
In April 2021, the bank reportedly planned to launch a BTC fund for private clients with NYDIG, a digital asset financial services firm that will act as a depository.
Although Dimon changed his mind about blockchain, he did not give up negative comments about BTC. In May, he warned people to stay away from assets and cryptocurrencies in general, but had to accept high demand from institutional investors.