TLDR:
- JPMorgan CEO Jamie Dimon announced the bank will allow clients to buy Bitcoin but won’t custody it
- This marks a major shift for the largest U.S. bank, with Bitcoin expected to appear “in statements for clients”
- JPMorgan is likely to offer access to Bitcoin ETFs, following competitors like Morgan Stanley
- Dimon maintains his personal skepticism, comparing Bitcoin to smoking and citing concerns about criminal use
- This banking sector shift follows successful U.S. spot Bitcoin ETF launches, which have accumulated over $125 billion in assets
JPMorgan, the largest bank in the United States, will soon allow its clients to buy Bitcoin, according to CEO Jamie Dimon’s announcement at the company’s annual investor day. This marks a major shift for the banking giant, especially given Dimon’s long history of criticizing cryptocurrency.
Speaking to CNBC, Dimon clarified that while clients will be able to purchase Bitcoin, JPMorgan itself will not hold the digital assets. “We’re not going to custody it,” he stated, adding only that Bitcoin will appear “in statements for clients.”
The move brings JPMorgan in line with competitors like Morgan Stanley, which already offers access to spot Bitcoin ETFs for qualifying clients. Sources cited by CNBC suggest JPMorgan is expected to provide access to Bitcoin exchange-traded funds (ETFs).
Until now, JPMorgan’s exposure to cryptocurrency has been limited to futures-based products rather than direct investment options. The bank is listed as an authorized participant in BlackRock’s iShares Bitcoin Trust, showing some level of involvement in the crypto space despite its CEO’s public stance.
This decision appears to be driven by client demand rather than a change in Dimon’s personal opinion. The CEO has made it clear that his views on Bitcoin remain unchanged.
The Banking Sector’s Crypto Shift
JPMorgan is not alone in its evolving approach to cryptocurrency. Other major financial institutions are also warming to digital assets as consumer interest grows.
Morgan Stanley CEO Ted Pick has indicated the bank would work with regulators to find ways to offer customers access to crypto safely. Similarly, Bank of America CEO Brian Moynihan suggested that once regulators provide clarity, “the banking system will come in hard on the transactional side of it.”
This shift in the banking sector follows the highly successful launch of U.S. spot Bitcoin ETFs. These investment vehicles have accumulated over $125 billion in assets under management, representing approximately 5.6% of all Bitcoin.
Just last week, JPMorgan analysts noted that investors are moving from gold to Bitcoin. Nikolas Panigirtzoglou, managing director for the firm, stated that “Bitcoin has been pushing out gold and rising.”
Dimon’s History of Bitcoin Criticism
Despite JPMorgan’s new Bitcoin offerings, Dimon continues to express skepticism about the cryptocurrency. At the investor day, he compared owning Bitcoin to smoking: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.”
This echoes comments Dimon made to CBS News in January, when he said he doesn’t believe Bitcoin has intrinsic value. He has consistently maintained that while he isn’t against cryptocurrency as a whole, he remains opposed to Bitcoin specifically.
Dimon’s criticisms have been harsh over the years. In 2021, during a Senate hearing, he called Bitcoin “worthless” and claimed its only real use case was among “criminals, drug traffickers, and tax avoiders.”
In 2018, he called it a scam and reportedly threatened to fire JPMorgan traders who dealt with it. As recently as this year at Davos, after Bitcoin surged past $100,000, he dismissed it again as “the pet rock,” insisting it “does nothing.”
The contrast between JPMorgan’s business decisions and its CEO’s personal views highlights the pressure financial institutions face to adapt to changing client preferences in the investment landscape.
Over the past four trading days, U.S. spot Bitcoin ETFs have added another $1 billion in assets under management, bringing the total to 1.18 million BTC worth approximately $125.89 billion.
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