JPMorgan Chase is fully embracing digital assets as the banking giant is preparing to launch an actively managed Bitcoin fund, according to a Coindesk report published on Monday.
Though the Wall Street giant did not announce anything officially, multiple sources of the publication revealed that the bank might launch the fund as soon as this summer. The report further outlined that the lender will partner with NYDIG for its crypto custodial needs.
This is a massive turnaround on the part of the bank, given the harsh criticisms of JPMorgan CEO Jamie Dimon on Bitcoin. Dimon went as far as calling the digital currency a complete ‘fraud’ but toned down his distaste over the years. He, however, pointed to the inevitable regulatory backlash on the crypto space and even said that Bitcoin is ‘not my cup of tea’.
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The direct adoption of Bitcoin by JPMorgan shows the high institutional interest in cryptocurrencies. The bank’s Bitcoin fund will be available only to the private investors, the crypto-focused media detailed.
Wall Street’s Bet on Bitcoin
While JPMorgan is yet to launch its Bitcoin fund, rival Morgan Stanley is already offering three Bitcoin funds to its wealthy client base. However, Morgan Stanley tapped the services of Galaxy and NYDIG, which only give crypto exposure without any active fund management.
Though Dimon was harsh on Bitcoin, his bank continuously posted a bullish outlook on Bitcoin. In a note published earlier this month, the bank kept a $130,000 theoretical long-term price target for Bitcoin.
Meanwhile, JPMorgan is highly invested in blockchain technology and is testing JPM Coin for internal transaction settlement. The bank also launched an indirect crypto-adjacent investment product last month, consisting of shares of the companies like MicroStrategy, Riot Blockchain, NVIDIA, PayPal, and a few other companies with high stakes in the crypto economy