JPMorgan now offers clients access to six crypto funds … but only if they ask

Published at: Aug. 6, 2021

JPMorgan Chase quietly opened up access to six crypto funds over the past three weeks as it looks to offer crypto exposure to a variety of clients.

In the latest move, the bank’s private clients will now have access to a new Bitcoin fund created by crypto investment firm New York Digital Investment Group (NYDIG).

NYDIG is owned by Stone Ridge Asset Management and the “Stone Ridge Bitcoin Strategy Fund” offers exposure to Bitcoin via futures markets.

The NYDIG fund is in addition to five crypto funds that the bank opened access to last month: Grayscale Investments’ Grayscale Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust and Ethereum Classic Trust, as well as the Osprey Bitcoin Trust.

While the traditional financial institution has taken a big leap by offering crypto exposure via six different funds, it is reportedly taking a cautious approach to how it offers its new digital-asset services.

According to unnamed sources quoted by Business Insider, JPMorgan advisors are not allowed to overtly promote the crypto funds, and can only conduct the transactions upon the client's request.

The Grayscale and Osprey Funds are open to all users of its various wealth management platforms including its self-directed Chase trading app, while the NYDIG fund is only open to private banking clients.

Related: US megabank JPMorgan to hire more blockchain talent

The investment banking giant has a complicated history with cryptocurrency, after CEO Jamie Dimon described Bitcoin as fraud back in 2017.

Analysts at Goldman Sachs appear to be working through some of the same issues, despite the firm actively working to offer exposure to the sector.

In June, Jeff Currie, the global head of commodities research at Goldman Sachs described Bitcoin as a “risk-on” asset similar to copper. In the same month, analysts from the bank released a crypto report which concluded that Bitcoin is not “a long-term store of value or an investable asset class”.

Goldman Sachs currently provides crypto services through a derivatives trading desk and a Bitcoin futures trading platform that was rolled out last month. The firm has also filed for a sort-of DeFi-based ETF in late July.

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