Led by outspoken crypto opponent Jamie Dimon, the US bank is reportedly positioning the fund as the “safest and cheapest” investment vehicle for Bitcoin
JP Morgan was firmly against cryptocurrencies until recently, but is now reportedly launching a Bitcoin fund for its wealthy clients through its private banking arm.
The Bitcoin fund currently being offered to the American bank’s wealthy customers is passively managed, according to a Coindesk report citing two sources familiar with the matter.
Coindesk added that its private banking advisors were only briefed on the product yesterday and that investments in the fund had yet to be secured from clients.
The American bank will refer to the fund as the safest and cheapest Bitcoin investment vehicle in the private markets, the report said.
JP boss Jamie Dimon is notoriously not a fan of Bitcoin or crypto and has made several public comments criticizing investors or warning about crypto and digital assets.
Calling Bitcoin a scam in 2017 before going back a little in 2018, he said he regretted that particular comment while claiming that he didn’t care about the Bitcoin topic at all.
Recently, in an interview with CNBC in May 2021, Dimon said, “I’m not a Bitcoin backer, I don’t really care about Bitcoin” but “Customers are interested and I don’t tell customers what to do”.
Coindesk’s report highlighted a suggestion that the private bitcoin fund could end up being a “simple port” to an exchange-traded bitcoin fund, but added that JP Morgan is not currently among the financial firms whose applications for bitcoin ETFs are audited by the SEC.