Quick Summary:
- Jamie Dimon, JP Morgan CEO, is one of its longest-standing critics as he previously referred to Bitcoin as a scam and worthless.
- Even though JP Morgan was still skeptical about Bitcoin, it will now enable clients to buy Bitcoin, but it will not offer it custody services.
- The crypto exposure of the firm has been confined to the futures bases products only so far.
- Talking about the relocation, Dimon compares it to a right to smoke and says:
“I would not want you to smoke but I would speak up on the right to smoke and I would speak out on the right to buy Bitcoin.” - Another competitor bank, Morgan Stanley, has already started selling spot Bitcoin ETFs to accredited consumers.
- Since January 2024, U.S. spot Bitcoin ETFs had $42 billion in fresh flows.
Skeptic to Silent Supporter?
The attitude of Jamie Dimon towards Bitcoin has slightly changed. In a statement made at the JP Morgan annual investor day on May 19 the CEO said:
“We will allow you to buy it. We are not to custody it. We will place it in statements to clients.”
Although this is a major policy change on the side of JP Morgan, it does not imply full crypto adoption. The bank is avoiding direct ownership of cryptocurrencies and is providing the access to them through the Bitcoin exchange-traded funds (ETFs).
The Resigned Support of Dimon
Dimon has not eased his personal outlook with regard to Bitcoin. Actually, he echoed years old concerns which frequently associated cryptocurrencies with crimes. He commented:
“I have been extremely anti-crypto, Bitcoin, etc., and the only justifiable argument in its support is criminals, drug dealers, money laundering, tax evasion. Had I been in the government I would have shut it down.”
That notwithstanding, Dimon made it quite categorical that he admires consumer choice—preference to buy Bitcoin or not.
Competition in the Crypto-World Gets Intense
Although JP Morgan is taking baby-steps, Morgan Stanley is going full steam ahead as it is already listing spot Bitcoin ETFs to its customers. These securities have been a fairly successful venture in America as there has been about $42 billion in aggregate inflow since their establishment, January 2024.
Final Thoughts
The fact that JP Morgan is currently permitting the purchase of Bitcoin though the bank has not yet acted on its bank as an asset is an indication that both institutional and retail investors are increasingly demanding it. Jamie Dimon can still refer to Bitcoin as a pet rock, but he still cannot denounce the growing power of the asset in the world of money.
With Wall Street slowly taking to the crypto world, it is easy to find that cynicism does not necessarily imply a lack of action.