JPMorgan, led by Jamie Dimon, quietly reveals the access of half a dozen crypto funds


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Jamie Dimon, President and CEO of JPMorgan Chase & Co., listens during a Business Roundtable discussion on the Innovation Summit in Washington, DC, December 6, 2018.

Andrew Harrer | Bloomberg | Getty Images

With a little pomp, JPMorgan Chase has started giving its clients access to six crypto funds over the past month.

On Thursday, financial advisers were allowed to start putting private bank clients in a new bitcoin fund established with a crypto firm NO, towards people with knowledge of the move. The fund is almost identical to the one that NYDIG offers to the clients of a competing bank Morgan Stanley, people said.

Late last month, JPMorgan introduced access to four funds from Investments in gray tones and one of Osprey funds: Gray Bitcoin Scales, Gray Bitcoin Cash Fund, Gray Ethereum Scales, Ethereum Classic Grayscale and Osprey Bitcoin Trust, people said.

Sources declined to be identified when talking about bids, and each cited an embarrassing fact: JPMorgan CEO Jamie Dimon was one of Wall Street’s most outspoken skeptics about bitcoin and related digital assets.

The moves by JPMorgan, the largest U.S. bank by assets, clearly show that Wall Street’s years of unwillingness to deal with cryptocurrencies is over. Follow earlier steps from rival Morgan Stanley and Goldman Sachs to offer bitcoin funds clients, first reported to CNBC, and hundreds smaller banks lined up to do the same.

While Dimon called bitcoin “cheat“it wouldn’t have ended well, there were signs that his resistance had eroded. Earlier this year, pressure at JPMorgan was increasing as clients sought bitcoin exposure and employees he thought openly when the bank would get involved.

Early signs

In May, with his bank in advanced negotiations with crypto firms to offer a range of funds, Dimon reiterated that he still does not support bitcoin. But he admitted that “clients are interestedand I don’t tell clients what to do. “

Spokesmen for JPMorgan’s wealth management department and NYDIG declined to comment on the story.

Greg King, The CEO of Osprey Funds, said in a statement that he was “pleased that JPMorgan’s clients will now have access to the cheapest publicly traded bitcoin fund in the United States.”

A Grayscale spokeswoman said the company was “excited to see esteemed financial institutions, such as JPMorgan, listening and responding to growing investor interest in digital currencies.”

Introduction off

Still, the muted product introduction this summer is a sign of the bank’s ambivalence towards bitcoin.

JPMorgan advisors are not allowed to recommend grayscale or Osprey products, but can only respond to client requests, according to Business Insider, who reported earlier about the increase in funds.

And while the bank makes these funds widely available on its various wealth management platforms, only private bank clients can access the NYDIG fund.

This may be because the NYDIG product provides more direct access to ownership of bitcoin, which the crypto firm holds in cold stores, rather than other funds, which are stakes in a trust that supports bitcoin. Clients of private banks usually have the least $ 10 million in assets and are considered more sophisticated investors.

The NYDIG fund is being sold as one of the cheapest and safest ways to increase bitcoin exposure, according to Coindescu, who reported on the product earlier.

It is also advertised that the fund has the ability to be seamlessly inserted into the ETF in the future, if regulatory approval is obtained, one of the people said.

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