Banking company JPMorgan Chase will supposedly soon give their clients a passively managed Bitcoin fund.
JPMorgan Chase has joined with the Bitcoin-centered institutional-grade NY Digital Investment Group to offer the passive Bitcoin fund, CoinDesk reports mentioning two sources close to the issue.
Advisers at the bank were prepped for the offering in a call only yesterday, according the report, who also reported that this fund will be “given to their clients as the cheapest and safest bitcoin investment fund on the private markets right now.”
A source said that the fund would be changeable into an ETF after that product has a precedent of SEC approval. The fund has not secured any clients funds yet.
Note that NYDIG, the JPMorgan partners in offering this fund, have already filed the documents for a Bitcoin ETF, after many other firms, like Invesco, who also filed today.
Although the new in-house fund might be expected to get investments soon, since last month, Mary Callahan Erdoes, the JPMorgan Wealth Management CEO, said the company’s clients see bitcoin like an asset class and “would like to invest.”
These remarks were during an interview back in June from “Bloomberg Wealth” which was published back on July 20th.
Wealthy clients of JPMorgan’s are already accessing GBTC and other bitcoin funds using a brokerage account, Business Insider recently reported. But the brand new bitcoin fund will be open only to clients of JPMorgan Private Bank.
The Bitcoin fund represents a shift in the conservative mega-bank’s cryptocurrency strategy. Recall that Jamie Dimon, the JPMorgan CEO, said that Bitcoin was a fraud in 2017.
Dimon has also been reported by the Wall Street Journal as saying that, “I’m not a Bitcoin supporter and I don’t care about it,” and, “On the other hand, my clients seem to be interested and I don’t tell my clients what to not do.”
Bitcoin is currently undergoing major changes as Washington attempts to restrict cryptocurrencies using a range of methods. But this has not slowed the digital asset down, as Bitcoin and Ethereum have rallied from their recent multiple month dip.
Author: Blake Ambrose