JPMorgan Chase & Co. has opened a new venture within their company and involves trading in the popular cryptocurrency which has been one of the most profitable in the competition. The investment bank calls this “Bitcoin Fund” and it encourages digital money investing and trading, but is currently limited to high net worth clients.
JPMorgan Bitcoin Fund: what is it?
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NEW YORK, NY – MAY 11: People walk past the JPMorgan Chase New York headquarters on May 11, 2017 in New York City. JPMorgan is one of nine big companies that anti-Donald Trump protesters have called Corporate Backers of Hate for their financial support for some of Trump’s policies. JPMorgan CEO Jamie Dimon is a member of Trump’s Business Council and the banking giant has donated $ 500,000 to Trump’s inaugural committee.
The company is somehow investing in Bitcoin, through its customers and interested investors, to participate in using JPMorgan as a platform to trade, invest and buy shares of the crypto. -cash. According to the CoinDesk report, the so-called “Bitcoin Fund” could be rolled out this summer season, which is in the coming months, open to interested parties.
The company offers an “actively managed fund” to all Bitcoin investors on the platform, giving top priority and assistance regarding the money that has been put into the blockchain digital currency. CoinDesk called this the “most unlikely” move by JPMorgan, especially since its CEO has already disclosed his massive loathing with Bitcoin.
Sources also indicated that her business would primarily target its private “wealthy clients”, suggesting it would be closed only to people known and trusted.
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Why did JPMorgan open a Bitcoin fund?
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WASHINGTON, DC – FEBRUARY 03: Jamie Dimon, CEO of JPMorgan Chase, attends a political forum with US President Donald Trump in the State Dining Room of the White House February 3, 2017 in Washington, DC. Executives from the automotive and manufacturing industries, financial and retail services and other powerful global companies were invited to the meeting with Trump, his advisers and his family.
According to Markets Insider, a crypto service provider known as “NYDIG” would assist the bank and act as a custodian provider for all transactions regarding cryptocurrency investments. There are no exact reasons why JPMorgan opened a Bitcoin fund on their platform, especially since the CEO initially commented negatively on the cryptocurrency.
The company also claimed that the liquidity of Bitcoin’s current performance in the market is expected to “rise rapidly” and recover from its recent losses which resulted in more than $ 10,000. It was during the Coinbase IPO where Bitcoin rose in stocks, having a record price of $ 63,000 before it dropped to $ 53,000.
Will it be open to regular customers soon?
As for opening up to regular clients like a trading platform with Binance and Robinhood, that is unlikely to happen at this time, especially since insiders have indicated its private funding. In addition, the assets and investments made in the cryptocurrency are said to be actively managed, which suggests that it would take a lot of resources for this to continue, on the JPMorgan side.
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Written by Isaiah Richard
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