From nay to yay: JPMorgan’s path to crypto could shake up finance
May 4, 2021. Summarized by summa-bot.
Compression ratio: 22.1%. 1 min read.
After bashing Bitcoin back in 2017, JPMorgan CEO Jamie Dimon seems to have softened his stance on crypto, and so has the firm itself.
Back in 2017, JPMorgan CEO Jamie Dimon referred to BTC as a “fraud,” even going as far as saying that he would fire employees if they dealt with Bitcoin.
Despite Dimon’s somewhat negative outlook toward Bitcoin and the crypto industry, recent reports suggest that JPMorgan is currently preparing to offer some of its clients an actively managed Bitcoin fund, potentially becoming one of the largest — and most unlikely — banking institutions to embrace crypto.
Additionally, it has also been reported that JPMorgan’s Bitcoin fund will be “actively managed,” which comes in stark contrast to the passive fare currently offered by many crypto players such as Pantera Capital and Galaxy Digital.
Felix Simon — head of business development at Dsent AG, a platform for digital assets and complex tokenizations, and former market head of sales for structured derivatives investments at Credit Suisse — believes that banks tend to shy away from investment offerings whose underlyings fundamentals are not well proven, adding:
Mattia Rattaggi, managing partner of Meti Advisory AG and former managing director and head of regulatory affairs and governance reporting for UBS, believes that the vast majority of banks have long neglected Bitcoin and cryptocurrencies in general out of the fear of associating themselves with a source of potentially negative headlines, as well as the fear of industries, like decentralized finance, that can have a direct impact on their centralized business model.