JPMorgan Chase has partnered with a Bitcoin-focused institutional-grade New York Digital Investment Group platform to offer a passively managed in-house Bitcoin fund, the sources said.
CoinDesk, citing two undisclosed sources, reported that advisers at the bank were prepared for the offering in a launch call on August 4. According to the information, the fund will be presented to clients as the safest and cheapest Bitcoin investing tool available on the private markets. A source indicated that the fund would be easily convertible to an ETF once that product has set a precedent of approval by the SEC. JPMorgan's partner at the fund's proposal, the New York Digital Investment Group, has already applied for a Bitcoin ETF, as have other firms.
JPMorgan Asset & Wealth Management CEO Mary Callahan Erdoes said last month that their clients view Bitcoin as an asset class and want to invest in it. Wealthy clients of JPMorgan can already access GBTC and other Bitcoin funds through a brokerage account. However, the new Bitcoin fund will only be available to JPMorgan Private Bank clients.
JPMorgan CEO Jamie Dimon is skeptical about Bitcoin. Despite his position, clients expressed a desire to invest in Bitcoin, which prompted the firm to look for ways to do so. “I am not a Bitcoin supporter, I don’t really care about Bitcoin,” Dimon told the Wall Street Journal in May. "On the other hand, clients are interested and I don’t tell clients what to do."
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.