A recent report has revealed that JPMorgan is planning for its clients to have access to an actively managed Bitcoin fund.
NYDIG will act as custody of the fund while it is accessible to the bank’s private wealth clients.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
According to sources familiar with the development, JPMorgan plans to make the funds available to clients as soon as this summer. This makes it different from other large funds which are passively managed.
JPMorgan is turning a new leaf
The move is in contrast to the bank’s earlier resolve on Bitcoin (BTC) when the token was put under severe scrutiny by the bank’s board. In 2017, JPMorgan’s chief executive officer Jamie Dimon stated that Bitcoin is “worse than tulip bulbs.” He added that the cryptocurrency will eventually go into extinction.
He went as far as saying any JPMorgan trader caught trading the cryptocurrency will be fired immediately.
Four years on, Bitcoin has even attracted more interest and seen more adoption. Now the bank has turned a new leaf, as it wants to allow clients to invest in Bitcoin fund.
With the recent move by the bank, it could be succumbing to clients’ pressure, who are increasingly turning to crypto investments.
According to the announcement, the fund will be offered to certain private clients.
While JPMorgan has been actively opposing Bitcoin for years, the company has a different disposition to the blockchain, the technology that created Bitcoin. So, the news of direct involvement in Bitcoin may not be a complete surprise.
More Bitcoin adoption
The year is only approaching its mid-term, and the level of new entrants to the industry has already skyrocketed. Big players hold the key to broader adoption, and it seems some of them are gradually turning up, with JPMorgan being the latest.
Observers believe that as more institutional players in the global financial system keep offering crypto or Bitcoin services to their clients, Bitcoin will continue seeing massive adoption.