JPMorgan is preparing to launch an actively managed bitcoin fund for wealthy clients
JPMorgan Chase is preparing to open a bitcoin fund with active management for a limited group of its clients. This is reported by CoinDesk with reference to sources.
The fund may launch in the summer, and NYDIG will be responsible for storing its assets. It will be actively managed by the bank, which sets it apart from other existing bitcoin offerings, including Pantera Capital and Galaxy Digital. These firms buy and store bitcoins for the benefit of customers, but do not perform any other investment management activities.
According to the sources, the JPMorgan fund is focused on the clients of the private equity management division. Galaxy and NYDIG are also providers of bitcoin funds for clients of Morgan Stanley Bank.
JPMorgan CEO James Dimon has in the past called bitcoin a "fraud" and promised to fire any trader who is caught trading in the cryptocurrency. Subsequently, he softened his attitude, but noted that he does not consider bitcoin as an investment asset for himself.
In February, JPMorgan co-president and chief operating officer Daniel Pinto announced that they are ready to offer customers the opportunity to invest in bitcoin if they see sufficient demand.
"If over time an asset class develops that will be used by different managers and investors, we will have to get involved. There is no demand yet, but I am sure that it will appear at some point, " Pinto said.
JPMorgan analysts regularly issue notes on bitcoin, in which they repeatedly expressed doubts about the ability of the cryptocurrency to continue the rise during the current rally.