Updated 27 Jul, 2021

JPMorgan Opens Five Cryptocurrency Funds to Clients

JP Morgan opens

Key Takeaways:

  • JPMorgan opens cryptocurrency investments to all its clients
  • The move effectively means JPMorgan is the first to expand crypto services beyond the ultrarich

JPMorgan Opens Crypto Trading to All Clients

Global banking giant JPMorgan has opened cryptocurrency trading to all its clients. Its clients range from retail to institutions. The move came as a surprising twist after the bank’s CEO Jamie Dimon has previously expressed his reluctance to dive into the world of cryptocurrencies.

Still, JPMorgan’s decision would make it possible for all clients of the bank to buy and sell five cryptocurrency products. Infact, their product includes Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic products, and Osprey Funds’ Bitcoin Trust.

“We are excited to be onboarded to the JPMorgan wealth platform,” Greg King, founder and CEO of Osprey Funds told Forbes. “OBTC remains the lowest-priced publicly traded bitcoin fund in the U.S. We believe JPMorgan’s clients will see value in the product,” he added.

The policy, which became active on July 19, now applies to the wide range of JPMorgan clients. Spanning from retail clients using the Chase trading app, to the wealthiest tier of clients that have entrusted billions of dollars to JPMorgan’s wealth management division.

JP Morgan expanded crypto investments and trading to retail self-directed clients. It effectively became the first major US investment bank to allow cryptocurrency access to people beyond just ultra-wealthy clients.

Prior to the expanded access, JPMorgan only allowed private ultrarich clients to invest in actively managed bitcoin funds.

Bitcoin’s Institutional Adoption is Growing

The breakthrough step was largely cheered by crypto circles and those waiting to get their hands on Bitcoin-related products. Since there is still no regulation that would allow direct access to bitcoin and other cryptocurrencies, banks need to use Bitcoin derivatives. As in this case, investment firms, such as JPMorgan, allow clients to own funds that own the digital asset.

So far, major investment banks including Goldman Sachs and Morgan Stanley have offered some type of Bitcoin-related products for their clients to invest in.

In May, Bitcoin skeptic Jamie Dimon said he “doesn’t care” about bitcoin, but “the bank’s clients are interested and I don’t tell clients what to do.” The broad access to bitcoin products is seen as one of the first steps toward pushing cryptos into mainstream finance. It is also a way to allow cryptos to be present in the portfolio of everyone who wants to have exposure to the growing digital market.