JPMorgan activated support for bitcoin trading to all its clients without exception. The organization has a history of questioning the first cryptocurrency in the market.
Advisors will take orders for five cryptocurrency-linked products.
The bank's new decision would have taken effect last Monday, July 19.
The U.S. investment and financial services bank, JPMorgan, extended its Bitcoin trading service to every client. Years ago could be considered unusual, given the organization's history of questioning against the first cryptocurrency in the market.
Now, brokers in the bank's wealth management division will be able to accept buy and sell orders for up to five corporate products related to bitcoin and other digital assets, according to a report released on Thursday, July 22, by Forbes.
Advisors to the referenced division, which manages about $630 billion, are now authorized to process investments in the following funds: the Grayscale Bitcoin Trust, the Bitcoin Cash Trust, the Ethereum Trust, the Ethereum Classic products, and the Osprey Funds Bitcoin Trust. Management would have formalized their decision last Monday, July 19.
"We are very pleased to be incorporated into JPMorgan's digital finance platform. OBTC remains the lowest-priced exchange-traded bitcoin fund in the U.S., and we believe JPMorgan clients will see value in the product," said Greg King, founder of Osprey Funds, in a statement.
Previously, only the bank's wealthiest clients or private banking customers had access to this type of cryptocurrency investment service. However, the new expansion of the service for bitcoin trading would be due to the pressure users would have exerted on the institution. The service expansion would reflect the appetite of customers to deal with bitcoin.
In these cases, investors do not have direct access to cryptocurrencies, do not have private keys, and do not have their wallets to manage them. The bank allows clients to buy or sell shares in the funds as indirect exposure to digital assets.
Other banks are also offering cryptocurrency exposure to their clients. Recently, The Morgan Stanley Europe Opportunity Fund Inc. acquired an estimated $1,325,339 value un Grayscale Bitcoin Trust, according to this document.
Citibank also expressed interest in offering crypto services to its clients. According to an interview published by the Financial Times on Thursday, May 6, 2021, the possibility arises from the bank's "customer interest." In this sense, Tuchman, its global director of foreign trade, explained that the bank is considering and analyzing "various alternatives," including trading, financing, and custody services for crypto assets.
JPMorgan and its CEO against Bitcoin
For years the chief executive officer (CEO) of JPMorgan, Jamie Dimon, questioned bitcoin and cryptocurrencies in general. His feud with digital assets dates back to 2017, when the executive referred to BTC as a fraud.
Furthermore, in a haughty attitude, Dimon went so far as to say that he would fire any of his employees who trade bitcoin for being "stupid." Now he is the one backing a decision to bring the leading cryptocurrency to more customers.
In the past, Dimon favored blockchains, a technology original to bitcoin as a digital system, but always exhibited skepticism for cryptocurrencies to the point of saying in September 2017, "Right now, these crypto things are a novelty. People think they're cool. But the larger they get, the more governments are going to shut them down."