TLDR:
- JPMorgan will allow clients to buy Bitcoin but won’t custody it
- CEO Jamie Dimon maintains his personal skepticism about Bitcoin
- The move follows successful US spot Bitcoin ETF launches
- JPMorgan is expected to offer access to Bitcoin ETFs
- Other major banks like Morgan Stanley and Bank of America are also warming to crypto
JPMorgan Chase, the largest bank in the United States, has made a surprising move in the cryptocurrency space by announcing it will allow clients to buy Bitcoin. This decision was revealed by CEO Jamie Dimon during the bank’s annual investor day, marking a change in the bank’s approach to digital assets.
Speaking to CNBC, Dimon clarified that while clients would be able to buy Bitcoin, the bank itself would not hold or custody the asset.
“We’re going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients,” Dimon stated.
The announcement represents a major shift for JPMorgan. Until now, the bank’s cryptocurrency exposure has been limited to futures-based products rather than direct investment options.
According to sources cited by CNBC, JPMorgan is expected to offer access to Bitcoin exchange-traded funds (ETFs). This aligns the bank with competitors like Morgan Stanley, which already offers access to spot Bitcoin ETFs for qualifying clients.
Banking Giants Warming to Crypto
JPMorgan’s decision comes as other major financial institutions show increased openness to cryptocurrency. Morgan Stanley CEO Ted Pick has indicated the bank would work with regulators to find ways to offer customers access to crypto safely.
Similarly, Bank of America’s CEO Brian Moynihan suggested that banking adoption would follow regulatory clarity.
“If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it,” Moynihan said.
This shift in the banking sector follows the highly successful US spot Bitcoin ETF launches. These ETFs have accumulated over $125 billion in assets under management, representing about 5.6% of all Bitcoin.
Recent data shows that US spot Bitcoin ETFs added another $1 billion in assets under management over just four trading days. The total now stands at 1.18 million BTC worth approximately $125.89 billion.
Dimon’s Personal Stance Unchanged
Despite JPMorgan’s institutional move toward Bitcoin, Jamie Dimon made it clear that his personal views on the cryptocurrency haven’t changed. He continues to associate Bitcoin with problematic use cases, including money laundering and illegal activities.
“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” Dimon was quoted as saying, drawing a parallel between Bitcoin ownership and smoking.
This statement echoes his January comments to CBS News, where he likened Bitcoin users to smokers. At that time, he maintained that while he wasn’t against crypto as a whole, he remained firmly opposed to Bitcoin’s utility.
Dimon’s skepticism about Bitcoin has been consistent over the years. In 2021, during a Senate hearing, he called Bitcoin “worthless” and claimed its primary use case was among “criminals, drug traffickers, and tax avoiders.”
In 2018, he called Bitcoin a scam and even threatened to fire JPMorgan traders who dealt with it. Earlier this year at Davos, after Bitcoin surged past $100,000, he dismissed it again as “the pet rock,” insisting it “does nothing.”
Interestingly, just last week, JPMorgan analysts reported that investors are pivoting from gold to Bitcoin. Nikolas Panigirtzoglou, managing director for the firm, noted that “Bitcoin has been pushing out gold and rising.”
JPMorgan is already listed as an authorized participant in BlackRock’s iShares Bitcoin Trust and has praised blockchain technology, even as its CEO continues to distance himself from Bitcoin specifically.
