Report: JPMorgan Prepares To Launch Actively Managed Bitcoin Fund
What Happened: A number of sources familiar with the matter told Coindesk that the actively managed fund will be offered to “certain clients” and may be available as early as this summer.
The sources also revealed that New York Digital Investment Group (NYDIG), a regulated Bitcoin custodian focused on institutions, will be JPMorgan’s custody provider.
The JPMorgan fund will be offered to private wealth clients and will be the first Bitcoin product offered to clients with direct exposure to the cryptocurrency.
Why It Matters: Over the past few months, institutions have been moving towards embracing cryptocurrencies with a number of new product offerings.
Last month, wall street banking giant Morgan Stanley (NSYE: MS) said it would offer its private wealth clients access to Bitcoin through three funds after rising demand from clients.
“We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near term,” said Mary Rich, the bank’s head of digital assets.
JPMorgan’s planned offering will make it the largest U.S bank to embrace cryptocurrencies as an asset class.
In the past, many believed the bank would be an unlikely candidate to get involved in the space after CEO Jamie Dimon shared his views on the subject.
“It’s just not my cup of tea,” said Dimon at the time while acknowledging that some “very smart people” have been buying into the cryptocurrency.
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