America’s leading bank, JPMorgan, is creating a Bitcoin fund to enable its high-net-worth clients to trade the top digital asset. However, there was no official announcement from JPMorgan; various publications unveiled that the bank might introduce the funds in Summer. The report further details that the lender will collaborate with NYDIG for its crypto custodial requirements.
For the past 18 months, JPMorgan’s favorite story has been that of Bitcoin developing as a hedging asset against inflation. Publicly traded companies like Tesla, WeWork, and Square have previously exchanged some of their cash reserves to append Bitcoin to their balance sheet. Additionally, the SFDSA (San Francisco Deputy Sheriffs’ Association), a non-profit organization committed to the support of law enforcement families and communities, unveiled that it involved bitcoin in its all-weather investment portfolio.
The increasing demand for bitcoin has compelled long-time critics such as JPMorgan to switch their stance towards bitcoin. Moreover, the American investment bank currently recommended investors add up to 1% of their allocation to crypto in order to accomplish any efficient profit in the overall risk-adjusted returns of the portfolio. Nikolaos Panigirtzoglo, JPMorgan’s Managing Director, also elucidated that a tamed Bitcoin would have a greater possibility of capitalizing on the declining demand for gold and its associated financial products. Under such circumstances, the strategist declared that bitcoin would probably meet the entire private sector’s investment in gold and march toward $130,000.
Morgan Stanley is Already Providing Three Bitcoin Funds
Recently, JPMorgan plans to allow particular clients to invest in bitcoin via an actively managed fund. The direct adoption of bitcoin by JPMorgan indicates the high institutional interest in crypto. Furthermore, the bank’s Bitcoin fund will be accessible only to the private investors, the crypto-focused media opined. While JPMorgan is still to start its Bitcoin fund, competitor Morgan Stanley is already providing three Bitcoin funds to its rich clients. Nevertheless, Morgan Stanley tapped the services of Galaxy and NYDIG, which only offer crypto exposure without any active fund management.
Meanwhile, JPMorgan is highly investing in blockchain technology and is trialing JPM Coin for internal transaction settlement. The bank also introduced an indirect crypto-adjacent investment product last month, involving shares of the companies such as MicroStrategy, Riot Blockchain, NVIDIA, PayPal, and a few other companies with great stakes in the crypto economy. If JP Morgan launches the bitcoin fund, it will be the most significant U.S.-based bank to commence working with Bitcoin as an official asset.