JPMorgan Chase & Co. has opened a new venture within their company and it involves the trading of the popular cryptocurrency that has been one of the top-grossing among the competition. The investment bank calls this “Bitcoin Fund” and it encourages investments and trading of digital money, but is currently limited to wealthy clients.
JPMorgan Bitcoin Fund: What Is It?
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NEW YORK, NY – MAY 11: People walk past as others protest outside of the New York City headquarters of JPMorgan Chase on May 11, 2017 in New York City. JPMorgan is one of nine major companies that anti- Donald Trump protesters have called Corporate Backers of Hate for their financial support of some of Trump’s policies. JPMorgan CEO Jamie Dimon is a member of Trump’s Business Council and the banking giant donated $500,000 to Trump’s inaugural committee.
The company is somehow investing in Bitcoin, through its clients and interested investors to take part in using JPMorgan as a platform to trade, invest, and buy stocks of the cryptocurrency. According to CoinDesk’s report, the so-called “Bitcoin Fund” could roll out this summer season, which is in the coming months, open for interested parties.
The company is offering an “actively managed fund” for all Bitcoin investors in the platform, placing the highest priorities and assistance regarding the money that was put in the blockchain digital money. CoinDesk referred to this as the “unlikeliest” move by JPMorgan, especially as its CEO has previously divulged his massive distaste against Bitcoin.
Sources also indicated that his venture would be primarily targetting its private “wealth clients” which suggests that it would be closed for known and trusted ones only.
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Why Did JPMorgan Open a Bitcoin Fund?
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WASHINGTON, DC – FEBRUARY 03: JPMorgan Chase CEO Jamie Dimon attends a policy forum with U.S. President Donald Trump in the State Dining Room at the White House February 3, 2017 in Washington, DC. Leaders from the automotive and manufacturing industries, the financial and retail services and other powerful global businesses were invited to the meeting with Trump, his advisors and family.
According to Markets Insider, a crypto-service provider known as “NYDIG” would help the bank and act as its custody provider for all transactions regarding cryptocurrency investments. There are no exact reasons as to why JPMorgan has opened a Bitcoin fund on its platform, especially as the CEO initially commented negatively against the crypto-money.
The company has also claimed that the liquidity of the current performance of Bitcoin in the market is expected to “rise quickly” and recover from its recent losses that resulted in more than $10,000. It was during the IPO of Coinbase where Bitcoin grew in stocks, having a record price of $63,000 before its fall to $53,000.
Will It Open to Regular Clients Soon?
As to opening to regular clients like a trading platform with the likes of Binance and Robinhood, it is unlikely to happen at the time being, especially as insiders have indicated its private funding. Moreover, the assets and investments made towards the cryptocurrency would be actively managed, suggesting it would take a lot of resources to keep this going, on JPMorgan’s side.
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Written by Isaiah Richard
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