JP Morgan, one of the banking giants, is making a significant move in the world of digital currency. The company is preparing to offer actively managed digital coins, specifically JP Morgan Bitcoin funds, to select clients. This decision makes JP Morgan the largest financial institution to accept Bitcoin as an asset class. The company’s green light for Bitcoin funds is expected to roll out this summer. According to reports from CoinDesk, this decision could mark a major turning point for the bank.

Actively Managed Bitcoin Funds

JP Morgan’s Bitcoin fund will be actively managed, a move that experts believe will bring a significant change to the market. Unlike passive digital coin funds offered by companies like Galaxy Digital and Pantera Capital, JP Morgan’s fund will allow clients to hold Bitcoin without directly touching it. This could break the existing pattern and offer wealthy clients a more hands-on approach to Bitcoin investing. Meanwhile, companies like NYDIG and Galaxy Digital are also partnering with firms like Morgan Stanley to offer similar funds.

A Shift in Leadership Stance

In 2017, JPMorgan CEO Jamie Dimon famously called Bitcoin a “fraud,” warning people not to invest in it. He even referred to Bitcoin traders as fools, suggesting they would pay the price for investing in the cryptocurrency. However, his stance on Bitcoin has shifted. As Bitcoin prices have surged, Dimon’s earlier comments have lost their weight. More recently, he has toned down his rhetoric, calling his previous statements “rhetoric” and no longer categorizing Bitcoin as a fraud.

Corporate Support Despite Personal Views

While Dimon remains personally skeptical of Bitcoin, other top executives within JP Morgan have embraced digital currency and blockchain technology, including the JP Morgan Bitcoin funds. The company’s Corporate and Investment Banking divisions have reported that their clients are increasingly requesting digital payment options. This demand has prompted JP Morgan to take steps in favor of digital currencies and blockchain technologies.

Bank’s Research on Bitcoin

JP Morgan’s research analysts are also actively tracking Bitcoin’s price and future prospects. They are providing insights and market reports to guide their clients. Furthermore, the bank’s Onyx division is working to accelerate interbank transactions using blockchain technology. Just five years ago, the company’s stance on blockchain technology was far more cautious. Now, Onyx is expanding its team globally, hiring blockchain engineers to support these new initiatives.

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