JP Morgan, an American multinational investment bank and financial services holding company, is set to launch a Bitcoin Fund for its wealthier clients as the cryptocurrency market space continues to elicit investors’ interest, despite the bank CEO’s, Jamie Dimon’s, skepticism about the digital currency.
Although details about the investment plans remain sketchy, news reports trending on the proposed launch indicated that JP Morgan opted for the cryptocurrency fund as part of its goal to serve its customers, who have been demanding crypto for quite some time now.
A news source in the bank was quoted as disclosing that the bank is coming up with new ideas on how to make cryptocurrencies closer to its clients, and that now it has started pitching its private, wealthy clients an in-house Bitcoin fund for the first time.
Specifically, trending online news report indicated that the details regarding the new fund were provided by two sources from within the company, who claim to be familiar with the matter
The sources disclosed that the Bitcoin Fund “is a passively managed fund that is offered in partnership with the Bitcoin powerhouse, NYDIG. However, as far as it is known, it still doesn’t have a single investment.
Industry observers believe that the bank’s move to launch the cryptocurrency fund is not surprising but that it is something that could change very soon.
They noted that after all, institutional and wealthy traders have been more involved with crypto than ever before, and it is only a matter of time before they start accessing it through JPMorgan, being a reliable party that offers a safe way to access crypto and profit off of it.
Attempts to get a reaction of the bank on the planned launch did not elicit comments from the officials. however, news media are speculating the fund will be offered to clients as the cheapest and safest Bitcoin investment vehicle within the private markets sector.
The sources further maintained that the private fund would be an easy port over to Bitcoin ETFs, once they are approved by the Securities and Exchange Commission (SEC). But then, the time remains unknown yet as the new SEC Chairman, Gary Gensler, stated openly that the regulator didn’t have it currently on its timetable.
Industry experts believe that JPMorgan’s transformation from a never-crypto bank to a major player in the crypto space will be exciting to watch given the fact that the bank’s CEO has been a Bitcoin skeptic right from the start.