JPMorgan offers private banking clients access to a new Bitcoin fund
As of August 5th, JPMorgan’s financial advisors were allowed to accept placements from private bank customers in the new Bitcoin funds of the crypto firm New York Digital Investment Group.
JPMorgan is responding to the growing demand from its customers for exposure to crypto assets by expanding its range of investment options. The bank now offers access to a Bitcoin fund specifically aimed at its private banking customers.
Starting August 5, JPMorgan’s financial advisors were allowed to accept placements from private banking clients in the new Bitcoin fund created by crypto firm New York Digital Investment Group, CNBC said, citing unnamed sources familiar with the matter. NYDIG is owned by New York-based financial services company Stone Ridge Asset Management.
The new BTC fund is called Stone Ridge Bitcoin Strategy Fund and, according to Cointelegraph, offers exposure to the largest cryptocurrency by market capitalization via the futures markets. The new fund is reportedly similar to the fund NYDIG is offering to Morgan Stanley’s clients.
Last month, JPMorgan began offering its clients access to five crypto funds from Osprey Funds and Grayscale Investments. These are the Osprey Bitcoin Trust, the Grayscale Bitcoin Trust by Grayscale Investments, the Bitcoin Cash Trust, the Ethereum Trust, and the Ethereum Classic Trust.
All five Grayscale Investments and Osprey crypto funds are available to all users of JPMorgan’s various asset management platforms. However, access to the new Stone Ridge Bitcoin Strategy Fund is restricted to private customers only.
While JPMorgan appears to have overcome its initial reluctance to enter the crypto market by offering exposure to six different funds, the financial firm is cautious in offering its digital asset services to its clients. Sources say advisors cannot openly advertise the funds but can only initiate transactions at the request of clients.
In fact, sources asked not to be identified when they revealed the new crypto offerings because of JPMorgan CEO Jamie Dimon. The CEO is known as an outspoken bitcoin and crypto skeptic and Dimon described Bitcoin as a “scam” back in 2017 that would not end well.
JPMorgan’s move to offer crypto exposure to its clients seems to signal that Wall Street’s reluctance to deal with crypto is finally over. Rival banks Morgan Stanley and Goldman Sachs are already offering Bitcoin funds to their customers.
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