Wall Street banking stronghold JPMorgan Chase, will start offering its retail wealth management clients access to a select number of cryptocurrency funds.
According to Business Insider on Thursday (July 22, 2021), anonymous sources familiar with the matter revealed the scoop. The report states that earlier this week, JPMorgan sent its financial advisors a memo to start taking buy and sell orders for its bank’s wealthy clients.
JPMorgan is the first major U.S. financial institution to offer such exposure to its big-money clients.
Funds approved by the Wall Street financial institution include Grayscale Bitcoin Trust, Grayscale Ethereum Classic Trust, Grayscale Bitcoin Cash Trust, Grayscale Ethereum Trust, and Osprey Bitcoin Trust.
Advisors from the bank will be prohibited from carrying out “unsolicited” crypto trades. They can only buy and sell cryptocurrency products based on clients’ demands. In addition, they cannot suggest cryptocurrency products to clients.
The bank’s latest development regarding cryptocurrency is a significant milestone, considering the bank’s recent negative stance towards the emerging industry.
Back in May, JPMorgan’s CEO Jamie Dimon advised people to stay away from bitcoin.
However, at the beginning of the week a hint towards JPMorgan’s pivot-turn was dropped when Mary Callahan Erdoes, Chief Executive Officer of J.P. Morgan Asset & Wealth Management Division, discussed the firm’s position on cryptocurrencies and said:
“A lot of our clients say that’s an asset class and I want to invest. Our job is to help them to put their money where they want to invest.”
Institutional interest in the cryptocurrency sector is growing. US banks continue to embrace cryptocurrency, indicating a change from their previous anti-crypto sentiments.
Fellow banking giants, Goldman Sachs and Citigroup are sure to lean towards a larger role in the cryptocurrency sector. The former now considering Bitcoin a new asset class and even bringing Ethereum products and services to its clients.