This week, JPMorgan Chase began selling an in-house bitcoin fund to its Private Bank clients for the first time. Therefore, completing its metamorphosis from a never-bitcoin mega-bank to a true player in the digital assets sector.
No Customer Investments Yet
According to two people familiar with the situation, the passively managed fund, launched in collaboration with bitcoin giant NYDIG, has yet to receive any customer investments. However, that might change shortly. The bank also just briefed advisers on the launch conversation. JPMorgan did not respond to a request for comment.
Dimon, The Bitcoin Skeptic
That’s under the bank’s bitcoin sceptic CEO, Jamie Dimon’s, party line. Despite his long-held aversion to shady online money, Dimon has stated that clients want it. Additionally, he also mentioned that JPMorgan has a responsibility to supply it.
In May, Dimon told the Wall Street Journal:
“I am not a Bitcoin supporter, and I don’t particularly care about Bitcoin. Clients, on the other hand, are interested, and I don’t tell them what to do.”
Easy Trasition to Bitcoin Exchange Trade Fund
According to a source, the private fund would also easily transition to a bitcoin exchange-traded fund. Provided that the long-awaited product clears the Securities and Exchange Commission’s high threshold.
Fund only available JP Morgan Private Bank Clients
Although JPMorgan does not have a bitcoin ETF application pending with the SEC, almost a dozen other businesses do. Others are watching with bated breath. Grayscale is generally expected to convert its high-fee Grayscale Bitcoin Trust product to an ETF when the time comes. NYDIG has also applied to a bitcoin ETF, which the SEC is now examining.
According to Business Insider, all of JPMorgan’s wealth management clients now have access to bitcoin funds like GBTC through their brokerage accounts. The new bitcoin fund, however, is only available to JPMorgan Private Bank clients.
