Originally disparaging the cryptocurrency sector, and even calling Bitcoin a scam, JPMorgan CEO Jamie Dimon has changed dramatically, becoming the first US bank to offer cryptocurrency funds to all of its wealth management customers.
Currently, JP Morgan Chase manages funds worth US$630 billion through its wealth management department. Five different types of cryptocurrencies can now be bought and sold by its financial advisors. Grayscale’s Bitcoin Trust and Bitcoin Cash Trust products, Ethereum Trust, Ethereum Classic products, and Osprey Fund Company’s Bitcoin Trust are among these products.
The above adjustment of measures took effect on July 19, according to an internal memo obtained by “Business Insider” . Greg King, founder and CEO of Osprey Funds, responded:
We are excited to join JPMorgan Chase Wealth Platform. OBTC is still the lowest priced Bitcoin fund in the United States, and we are confident that JPMorgan Chase customers will enjoy this product.”
Clients of JPMorgan Chase are affected by the new measures, including self-employed clients who use the JPMorgan Chase trading app, wealthy clients of JPMorgan Advisors, and the wealthiest clients of private banking services. Currently, science professionals are not allowed to recommend cryptocurrency products to customers, and customers can only request cryptocurrency transactions.
Previously, JPMorgan Chase only permitted private wealth clients to invest in actively managed Bitcoin funds managed by the New York Digital Investment Group (NYDIG).
After Bitcoin reached a record price of $65,654 in April, retail investors’ interest in cryptocurrency is growing, especially as JPMorgan Chase allows customers to trade cryptocurrency products.
Despite the current decline in cryptocurrency prices, the current price of Bitcoin is currently US$32,263, yet retail investors continue to demand a store of value for exposure to this highly volatile asset class.
As JPMorgan Chase’s head of asset and wealth management, Mary Callahan Erdoes stated in July that many of its customers are interested in investing in digital currencies.
Wall Street banks that have been offering customers cryptocurrency investment opportunities are currently paying close attention to whether other Wall Street banks will follow in JPMorgan Chase’s footsteps. Morgan Stanley has opened up three investment funds that use Bitcoin as an investment target to customers with assets of at least US$2 million. Moreover, Goldman Sachs Group has begun offering cryptocurrency futures trading to institutional clients and hedge funds.
