The institutional demand for cryptocurrencies has been on the rise over the past year. This has led financial institutions to provide their clients with exposure to Bitcoin and other cryptocurrencies. JPMorgan is now set to join Morgan Stanley and Goldman Sachs in offering its clients access to Bitcoin funds.
JPMorgan offers private clients access to BTC funds
JPMorgan Chase is working on actively providing its wealthy clients access to Bitcoin funds. The bank has become the latest US financial institution to offer such a service to its wealthy investors.
Two sources familiar with the matter revealed that JPMorgan would roll out the offer soon. The multinational bank will partner with institutional Bitcoin firm NYDIG, which will serve as JPMorgan’s custody provider.
The sources added that JPMorgan would actively manage the bitcoin funds themselves. This business model is the opposite of the one offered by crypto firms Pantera Capital and Galaxy Digital, which allows clients to buy and hold the bitcoin funds themselves.
The Bitcoin funds would only be available to JPMorgan’s private clients at the moment. This move could be to ensure that the clients are wealthy enough to withstand the volatility of Bitcoin and the cryptocurrency market.
JPMorgan joins Morgan Stanley and Goldman Sachs in offering access to Bitcoin funds
JPMorgan will become the latest US investment bank to offer its clients access to Bitcoin funds. Morgan Stanley and Goldman Sachs announced a few weeks ago that they are allowing their wealthy clients gain exposure to the leading cryptocurrency.
Goldman Sachs is expected to launch the service in the current quarter. Morgan Stanley’s Bitcoin fund became active this month and has attracted millions of dollars in investment so far. JPMorgan is yet to reveal the details of its Bitcoin funds. However, it could have similar conditions as those from Goldman Sachs and Morgan Stanley.
The move represents a massive shift in opinion over the past few years. JPMorgan and its CEO Jamie Damon were critics of Bitcoin, terming it as a fraud on one occasion. However, Damon walked back on his comment, and the bank has been actively involved in the cryptocurrency space since then.
JPMorgan regularly analyzes the crypto market and issues reports on trends and other crucial information. The bank also developed the JPM Coin, designed to help it leverage blockchain technology to provide faster, cheaper, and easier cross-border transactions.