- JP Morgan is the latest US megabank to launch its first Bitcoin fund.
- Morgan Stanley is already working on three funds.
Bitcoin has received a massive boost as JPMorgan Chase disclosed its intention to launch a Bitcoin fund to some clients. According to reports, multiple sources have revealed that JP Morgan is more likely to launch the Bitcoin fund by this summer.
The move will make JPMorgan the newest megabank in the US to offer a Bitcoin product to its clients. The bank, which is the largest in the US, has laid out plans for a successful rollout with a source disclosing that NYDIG, an institutional Bitcoin firm, will serve as a custody provider.
The decision to provide Bitcoin fund access to clients was previously announced by another U.S megabank, Morgan Stanley. With about $4.5 trillion in assets under management, the bank announced in a memo its plan to launch three funds for their institutional clients.
JP Morgan Changes Stance on Bitcoin
JP Morgan has not always had a soft spot for Bitcoin. In 2017, the bank’s CEO Jamie Dimon labeled Bitcoin as a fraud. He went further and labeled its traders as ‘stupid’ and threatened to fire any trader who touches it. Other critics firmly agreed with his stand and likened the digital asset to the infamous Tulip Mania that crashed after hitting its highest price.
BREAKING: JPMorgan CEO Jamie Dimon says bitcoin "is a fraud" that will eventually blow up https://t.co/ZnbSx16LT9
— CNBC (@CNBC) September 12, 2017
However, the Bank has gone soft on Bitcoin as the industry grows. One by one, its executives have changed their previous hard stances on Bitcoin. Dimon was just the first, but Umar Farooq has also followed suit, with the bank’s head of digital assets asserting that JPMorgan wasn’t anti-Bitcoin. According to him, JP Morgan supports cryptocurrencies that are properly controlled and regulated.
JPMorgan has risked lagging behind its peers who are quickly adopting digital currencies. Banks such as Morgan Stanley, Goldman Sachs, HSBC, Santander and more global giants have flocked into crypto as their clients demand exposure.
In March, JP Morgan launched its first crypto adjacent investment product, linked to the performance of Bitcoin proxy stocks. It is important to note that the current Bitcoin fund will be its first product directly determined by the performance of Bitcoin.
The Bitcoin price has reacted to this news with a 3% price surge to trade at a little over $54,000.