JPMorgan has now become the first bank to give its financial advisors the go-ahead to offer retail wealth management clients crypto funds. An anonymous source has told Business Insider that this applies to nearly all of JPMorgan's clients, including those using its self-directed retail trading app.
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The news came via an internal memo that said clients can now trade five different crypto products from providers such as Grayscale Investments to Osprey Funds. The ability for JPMorgan clients to trade these crypto funds became effective on July 19th.
According to Business Insider's source, JPMorgan advisors cannot recommend these products but may trade them upon a client's request.
The funds available to JPMorgan clients are as follows:
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Cash Trust
- Grayscale Ethereum Trust
- Grayscale Ethereum Classic Trust
- Osprey Bitcoin Trust
This move marks a rather large shift in the company's previous position on cryptocurrency, pointing towards demand from clients as a motive.
In 2017, JPMorgan's CEO, Jamie Dimon said that he would fire any employees that traded cryptocurrency. He even said that cryptocurrency was "worse than tulip bulbs" and that "It won’t end well. Someone is going to get killed."
Since then, Dimon has calmed his opinion on cryptocurrency, saying that he has no interest in it but that clients are interested.
“I’m not a bitcoin supporter. I don’t care about bitcoin. I have no interest in it. On the other hand, clients are interested, and I don’t tell clients what to do."
This story is developing.