It’s happening! JPMorgan Chase announced that they’ve started preparing an actively managed Bitcoin fund for selected clients. This marks a historic moment, as it’s the first of the mega-banks in the United States to embrace cryptocurrency as an asset, despite its CEO distaste for such forms of investment.
According to a report from Coindesk, the fund could start rolling out this summer, while institutional Bitcoin shop NYDIG will act as a custody provider.
An exclusive club
It appears that the fund offered by JPMorgan will be actively managed, which is, as a matter of fact, a significant break from the otherwise passive fare offered by other funds. Specifically, these allowed clients to buy and hold BTC through funds, but without touching it themselves.
The fund won’t be available for anybody, at least for starters! A source familiar with the entire situation revealed that only private wealth clients will be able to access it.
Is the CEO reconsidering his opinion?
There’s no doubt that this move is a sharp turn for the bank, known for the opinions of its CEO regarding cryptocurrency.
Back in 2017, Jamie Dimon called Bitcoin a “dangerous fraud”, able to “fire in a second” any trader who touched it. “If you’re stupid enough to buy it, you’ll pay the price for it one day”, he was saying three years ago.
Even though he started lowering the intensity of his discourse related to cryptocurrencies, JPMorgan’s CEO kept arguing that government regulation is inevitable, while adding that Bitcoin is “not my cup of tea”. However, the bank’s research analysts are regularly issuing insights on Bitcoin’s price and prospects, organized in reports available to clients.
To wrap it up, it’s essential to add that the bank’s new fund product will be its first that will directly depend on Bitcoin’s performance.