JPMorgan Is Now Pitching An In-House Bitcoin Fund To Wealthy Clients

A private Bitcoin (BITCOMP) fund is now reportedly in the works at JPMorgan Chase & Co (JPM) even though its CEO Jamie Dimon has been less than enthusiastic about the apex cryptocurrency in the past.

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What Happened:

The New York-headquartered bank began pitching the Bitcoin fund to its clients this week for the first time ever, reported CoinDesk.

People familiar with the matter told CoinDesk that the passively managed fund, offered in partnership with financial services firm NYDIG, does not have any client investments yet but that is set to change as advisers were primed recently.

A source of the cryptocurrency publication revealed that the private fund could act as a bridge to a Bitcoin exchange-traded fund once that type of product is cleared by the U.S. Securities and Exchange Commission.

NYDIG has filed with the SEC for an ETF, which will hold Bitcoin. Approvals for Bitcoin ETFs may not come anytime soon, as per Blockchain Association’s Karen Smith. 

On Wednesday, JPMorgan shares closed 1.08% at $151.24 in the regular session and rose 0.11% in the after-hours trading. At press time, BTC traded 3.74% higher at $39,411.67.

Why It Matters: 

Dimon has historically taken a stand against Bitcoin. In 2014 he said Bitcoin was a “terrible store of value,” according to MarketWatch.

A year later, he said BTC would not survive and in 2017 he labeled the cryptocurrency a fraud but later regretted those words.

In 2018, he remarked, “I don’t really give a shit about bitcoin."

Fast forward to 2021 and Dimon, still not a Bitcoin supporter, said, “I don’t care about bitcoin. I have no interest in it. On the other hand, clients are interested, and I don’t tell clients what to do.”

The mega bank’s clients meanwhile have access to Bitcoin through their brokerage account where they can pile up on Grayscale Bitcoin Trust (GBTC) and others, reported Business Insider.

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