JPMorgan is considering an actively managed bitcoin fund

As another weekend goes by, Bitcoin continues to remind investors that cryptocurrencies can be a volatile asset class.

Some have postulated that, given the dramatic fluctuations in price, Bitcoin assets could benefit from active management. JPMorgan could test this thesis soon.

“JPMorgan Chase is preparing to offer an actively managed Bitcoin (BTC, + 13.28%) fund for certain clients, which is the newest, largest and – if the CEO’s well-documented aversion to Bitcoin is – an indication that the US megabank does not accept crypto as an asset class, ”reports Danny Nelson for CoinDesk. “The JPMorgan Bitcoin fund could be launched this summer, two sources familiar with the matter told CoinDesk. Institutional bitcoin shop NO will act as JPMorgan’s custody provider, a third source said. “

JPMorgan plans an active Bitcoin strategy as Securities and Exchange Commission (SEC) is about to consider a pair of Bitcoin exchange-traded fund applications. Should these funds be approved, the products would likely be available to a wide range of investors including the retail segment.

“JPMorgan’s bitcoin fund is actively managed, multiple sources told CoinDesk. This is a notable departure from the passive tariff offered by crypto industry insiders like Pantera Capital and Galaxy Digital that allow well-heeled customers to buy and hold Bitcoin through funds without ever touching it themselves. Galaxy and NO are now offering Bitcoin funds to Morgan Stanley customers, ”said CoinDesk.

More and more institutional investors are jumping into Bitcoin, which is widely viewed as a catalyst for higher prices for digital assets.

Although JPMorgan Chase CEO Jamie Dimon previously tapped Bitcoin. Some analysts at the bank are optimistic about the digital asset and are actively researching the asset. One example that the bank recently highlighted is the importance of Bitcoin futures in the market.

“JPMorgan’s Investment, Commercial Banking and Wealth Management businesses have gradually evolved in handling crypto and blockchain, even though the customer-centric Bitcoin fund is new. The bank’s research analysts regularly provide market information on Bitcoin prices and prospects in reports available to customers, ”concludes CoinDesk.

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