Quick Summary:
- Jamie Dimon, CEO of JP Morgan, has been a long-time critic of Bitcoin, once calling it a “scam” and “worthless.”
- Despite his skepticism, JP Morgan will now allow clients to purchase Bitcoin, though it won’t provide custody services.
- The firm’s crypto exposure has so far been limited to futures-based products.
- Dimon likens the move to supporting the right to smoke, saying:
“I don’t think you should smoke, but I’ll defend the right to smoke—and I’ll defend the right to purchase Bitcoin.” - Morgan Stanley, a rival bank, has already begun offering spot Bitcoin ETFs to eligible clients.
- U.S. spot Bitcoin ETFs have seen $42 billion in inflows since January 2024.
From Skeptic to Silent Supporter?
Jamie Dimon’s stance on Bitcoin has taken a subtle but notable shift. Speaking at JP Morgan’s annual investor day on May 19, the CEO stated:
“We are going to permit you to purchase it. We are not going to custody it. We are going to put it in statements for clients.”
While this marks a significant policy shift for JP Morgan, it’s not a full embrace of crypto. The bank is steering clear of directly holding cryptocurrencies, offering access instead through Bitcoin exchange-traded funds (ETFs).
Dimon’s Reluctant Endorsement
Dimon hasn’t softened his personal views on Bitcoin. In fact, he reiterated long-held concerns, often linking cryptocurrencies to criminal activities. He commented:
“I have always been deeply opposed to crypto, Bitcoin, etc., and the sole true case for it is criminals, drug traffickers, money laundering, tax avoidance. If I were in the government, I would have closed it down.”
Despite this, Dimon emphasized that he respects consumer choice—even if it involves buying Bitcoin.
Crypto Competition Heats Up
While JP Morgan treads cautiously, Morgan Stanley is moving forward aggressively, already offering spot Bitcoin ETFs to its clients. These financial instruments have gained considerable popularity in the U.S., with $42 billion in total aggregate inflows since their launch in January 2024.
Final Thoughts
JP Morgan’s decision to allow Bitcoin purchases—while still refusing to custody the asset—reflects the growing demand from institutional and retail investors alike. Jamie Dimon may still call Bitcoin a “pet rock,” but even he can’t ignore the asset’s rising influence in the financial world.
As Wall Street slowly embraces crypto, it’s clear that skepticism doesn’t always mean inaction.