The price, popularity, adoption, and usage of Bitcoin have been rising substantially with time. Therefore, banks and institutions that once called Bitcoin a fraud and asked everyone to stay away from it, are now dealing in the same. In the past, we have seen Goldman Sachs letting wealthy clients invest in BTC. And now JP Morgan has also followed suit by allowing its clients to invest in Bitcoin funds for the first time. Yes, even here it is not accessible to every client of the bank but to a few selected ones.
The JP Morgan Bitcoin fund
JP Morgan became the most unlikely bank that started their Bitcoin fund due to obvious reasons. The bank will offer an actively managed BTC fund for some selected clients to invest in. Due to the high volatility and risk, they don’t offer this investment option to everyone. Reports suggest that the funds will be active this summer and the custody provider will be NYDIG. Note that all these reports are coming from CoinDesk who received data from a third party.
JP Morgan offering an actively managed fund will be quite a big thing for the industry. As up till now, there was nothing much like it. Even the ones offered by Morgan Stanley are nothing much but passive funds that are managed by Galaxy Digital and NYDIG.
The great turnover!
In 3-4 years JP Morgan’s entire take on Bitcoin went from fraud to asset. The CEO of the bank said back then if someone buys it they will have to suffer the consequences of that. And now in 2021, the same bank is offering Bitcoin investment services to its wealthiest clients. But yes it did take a lot of time to come around as compared to other banks. And ultimately the client demand was so high that they had to make changes and come around.
Even though just recently JP Morgan announced that they are going to let investors put money into Bitcoin, the bank was well into Bitcoin a lot before that. Their analysts used to give price predictions and provide insights. JP Morgan’s price prediction for Bitcoin in the year 2021 was $146,000.
Why is this important?
The investment in Bitcoin by major banks allows for the mass adoption of blockchain technology. I am pretty sure JP Morgan’s newfound interest in this sector will boost innovation and bring a lot of new applications to the sector. Bitcoin is already getting adopted by almost every major company, and its usage is also rising. Even the officials are also saying that peer-to-peer blockchain technology is difficult to ban and is the future.
Do you think the clients of JP Morgan will be interested to invest in Bitcoin funds? And what impact it will have on the price of Bitcoin? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.
Also Read: All South Korean crypto exchanges to shut down warns regulator
