JPMorgan Executives Expect to Explore Bitcoin 'At Some Point'
Crypto Specialist – Harry
JPMorgan co-chairman Daniel Pinto said that the new appetite "isn’t there yet" for the company to get into Bitcoin, but he's confident that "it will be at some point."
Big U.S. investment firm JPMorgan Chase are expressing interest in starting to explore buying Bitcoin, co-chairman Daniel Pinto claims. The executive informed CNBC Friday that JPMorgan's decision to launch Bitcoin investment services will rely on the customer's appetite for Bitcoin trading. While current demand is not high enough, Pinto is optimistic that it will continue to grow:
“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved…”
The new comments from Pinto reflect some bullish signs that have been emerging with JPMorgan for a while. In an internal call in January, JPMorgan's global business chief Troy Rohrbaugh publicly admitted that the bank's own workers were gradually wondering about the bank's crypto ambitions. Pinto had already said that he was open-minded and curious about buying Bitcoin, sources familiar with the situation confirmed.
JPMorgan's proposed shift to Bitcoin is somewhat ironic, given that Jamie Dimon, CEO of the firm, is known for his hostile attitude against Bitcoin.
In September 2017, Dimon named Bitcoin a "fraud," contrasting the world's biggest Blockchain to a "tulip mania" and expecting a huge crash. At this stage, Bitcoin had been priced near $3,500. Three months later, the digital coin reached $20,000—even as it entered the multi-year bear market soon afterwards.
Bitcoin surpassed JPMorgan at $352 billion in market capitalization in November 2020. The achievement came soon after Dimon likened Bitcoin to proprietary blockchain networks with regulatory restrictions, saying, “Bitcoin is kind of different and it’s not my cup of tea.”
In the past, JPMorgan analysts have given mixed messages about Bitcoin. In October 2020, JPMorgan allegedly indicated that Bitcoin's price will double or triple over the long term. Several months later, JPMorgan economists John Normand and Federico Manicardi concluded that Bitcoin was the least efficient hedge during times of acute market tension.