JPMorgan Chase & Co., the largest bank in the United States and one of the largest banks in the world, will launch a dedicated bitcoin fund for its wealthy clients as early as this summer.
JPMorgan finally joins the other institutions
As bitcoin continues to evolve as a premier deflationary hedge, traditional financial institutions continue to find ways to ensure their customers have access to this thriving asset class.
According to some rumors, sources familiar with the matter have revealed that JPMorgan is ready to launch a bitcoin fund that will allow its investors with net worth to invest in the flagship cryptocurrency. Institutional bitcoin solutions provider NYDIG (New York Digital Investment Group) will provide custody services to JPMorgan. The actively managed bitcoin fund may be available as early as this summer.
Even where skepticism and derision persist in the banking arena, it is absolutely clear that the previous contempt that the industry has expressed for the new technology is no longer possible. JPMorgan CEO Jamie Dimon, for example, in 2017 labeled bitcoin as a "fraud". Towards the end of last year, he claimed cryptocurrency is not his "cup of tea," pointing out that governments will eventually regulate the cryptocurrency industry more aggressively.
JPMorgan's remarkable turnaround comes in the wake of many other multinational banks looking to accelerate their involvement in the crypto industry. For example, Morgan Stanley and Goldman Sachs recently announced plans to start offering their customers access to cryptography.
In addition to the banking sector, even Silicon Valley giants such as Tesla (Tesla shares) and PayPal (PayPal shares) by Elon Musk got on the bitcoin bandwagon.
What this move by JPMorgan really means
JPMorgan's move proves two things according to the creator of the popular stock-to-flow model, PlanB.
First, PlanB noted that the bank is now interested in increasing the price of bitcoin. Notably, bitcoin has continued to rise beyond the expectations of many over the past year.
The cryptocurrency traded below $ 4.000 during the Black Thursday cataclysm of March 2020. The world's most valuable cryptocurrency subsequently experienced a radical rally. In fact, its price soared to a new all-time high above $ 64.000 in April. No wonder JPMorgan is launching a bitcoin fund for its clients amid rising prices and cryptocurrency demand. In other words, JPMorgan believes that bitcoin will never be in this price range again in the future.
Second, JPMorgan's entry underlines the megabank's confidence in the US government in not banning bitcoin. Experts like Bridgewater Associates Ray Dalio have speculated that there is a good chance the United States could ban bitcoin. In truth, the government has stepped up its oversight of cryptocurrencies in recent years. However, an outright ban on bitcoin seems blatantly far-fetched and JPMorgan clearly knows this.
