Following Goldman Sachs and JPMorgan Chase! Rumors suggest that JPMorgan Chase will launch a Bitcoin fund for high-net-worth clients.

JPMorgan, which once dismissed Bitcoin, is now reportedly set to launch an actively managed Bitcoin fund for high-net-worth clients this summer, with NYDIG handling the fund's custody services.

JPMorgan's New Bitcoin Fund

According to a report by CoinDesk, financial giant JPMorgan Chase is preparing to offer a Bitcoin fund to its high-net-worth clients as part of its "actively managed funds" offerings. While JPMorgan launched its first indirect exposure to cryptocurrencies in March this year, this rumored new Bitcoin fund would be the bank's first product directly tied to the performance of Bitcoin. The report states:

"JPMorgan's Bitcoin fund could be launched as soon as this summer. Institutional-grade digital asset management firm NYDIG will serve as the custodian for JPMorgan."

The actively managed fund that JPMorgan is considering differs from passive management (indexing) funds offered by companies like Pantera Capital and Galaxy Digital, where investors do not have to make their own entry and exit decisions but rely on fund managers to make investment decisions based on informational advantages and independent judgment.

Significance

Several traditional financial giants have previously announced plans to launch Bitcoin-related fund products, including Goldman Sachs and Morgan Stanley, with JPMorgan being the third. While JPMorgan is not the first traditional financial company to enter the cryptocurrency market, its shift is crucial for Bitcoin considering the bank's past extreme aversion to Bitcoin.

In 2017, JPMorgan CEO Jamie Dimon publicly stated that Bitcoin was worse than the tulip bubble and even predicted that many people would suffer as a result. However, in an interview with Bloomberg in February 2021 (source), JPMorgan's Co-President Daniel Pinto expressed optimism towards Bitcoin:

"If over time an asset class develops that is going to be used by different managers and investors, we will have to be involved. I'm sure it will at some point be there. Even though the demand isn't there yet, I'm sure it will come at some point."