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JPMorgan quietly unveils access to a half-dozen crypto funds

JPMorgan Chase began offering six crypto funds to its wealth management clients last month with minimal fanfare.

A new bitcoin fund was launched with crypto startup NYDIG on Thursday. Financial advisors were allowed to begin placing private bank clients into the fund, according to those familiar with the process. According to the persons, the fund is almost identical to one offered by NYDIG to Morgan Stanley clients.

JPMorgan has launched access to five funds that invest in Bitcoin and other cryptocurrencies. The move follows the launch of Grayscale Investments, a subsidiary of JPMorgan Chase, late last month. It is one of the first publicly traded funds to participate in the new fund pool.

JPMorgan CEO Jamie Dimon has been one of Wall Street’s most prominent opponents of bitcoin and comparable digital assets, according to the people who declined to be identified while speaking about the offerings.

Image Source: CNBC

JPMorgan Chase, the largest bank in the, has become the first major Wall Street firm to announce a deal to buy into the market for Bitcoin and other cryptocurrencies. Bank of America has become the first major bank to announce plans to provide bitcoin funds to its clients. The move comes after Morgan Stanley and Goldman Sachs announced similar plans earlier this month.

While Dimon has dubbed bitcoin a “fraud” that would fail, there were signs that his opposition was weakening. JPMorgan Chase has said it will not take a position in the bitcoin market. The Wall Street banking giant was under pressure earlier this year as clients demanded bitcoin exposure and workers publicly discussed when the bank might get involved with the virtual currency.

Early warning signs

JPMorgan Chase Jamie Dimon says he doesn’t tell clients what to do with their money. The bank was in advanced talks with crypto businesses to offer the range of assets, according to reports. JPMorgan’s wealth management business and NYDIG representatives declined to comment for this story.

Muted rollout

According to Business Insider, which first reported on the fund additions, JPMorgan advisors aren’t allowed to recommend the Grayscale or Osprey funds and may simply reply to client queries.

While the bank makes those funds broadly available across its different asset management platforms, the NYDIG fund is only available to private bank clients. That could be because the NYDIG product provides direct access to bitcoin ownership, which is held in cold storage by the crypto company, as opposed to the other funds, which are shares in a bitcoin-backed trust. Clients of private banks are often more sophisticated investors with at least $10 million in assets.

JPMorgan Chase Jamie Dimon says he doesn’t tell clients what to do with their money. The bank was in advanced talks with crypto businesses to offer the range of assets, according to reports. JPMorgan’s wealth management business and NYDIG representatives declined to comment for this story.

Also read: Bitcoin will resume its journey towards $100k suggests analysts

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