Several years after its CEO called bitcoin “fraud,” JPMorgan Chase & Co has completed its U-turn. America’s largest bank is purportedly looking into launching a bitcoin fund, with the digital asset financial firm NYDIG to serve as custodian.
- Citing people familiar with the matter, CoinDesk reported earlier today that JPMorgan intends to release an actively managed bitcoin fund soon.
- According to the coverage, the New York Digital Investment Group (NYDIG), describing itself as a “financial services firm dedicated to bitcoin,” will be the fund’s custodian.
- The Wall Street behemoth plans to offer its innovative BTC-focused product to private clients only.
- If JPM indeed proceeds with releasing a bitcoin fund, this would be the institution’s second initiative with affiliation to the cryptocurrency industry. Earlier this year, the bank filed a prospectus to enable investors to receive exposure to crypto-related public companies like Square and MicroStrategy through a debt instrument.
- More recently, JPMorgan analysts outlined the growing interest in bitcoin from banks as the asset’s volatility decreases over time.
- It’s worth noting, though, that long before the aforementioned positive approach on bitcoin, the bank, and its CEO, in particular, were highly critical.
- Jamie Dimon called bitcoin a “fraud,” said it was “worse than tulip bulbs,” predicted “it won’t end well,” and concluded, “someone is going to get killed.”
- Moreover, the executive threatened to “fire in a second” any bank employee trading bitcoin. He justified this with two somewhat controversial reasons: “It’s against our rules, and they are stupid.”
- Despite apologizing later about his harsh words, Dimon still asserted in 2020 that bitcoin is just not his cup of tea.