Financial institutions are becoming increasingly interested in the crypto sector. The major bank JPMorgan Chase has now announced the creation of a Bitcoin fund. Thus, investors will be able to invest in different stock baskets.
From Bitcoin Enemy to Bitcoin Friend
The major US bank JPMorgan was one of the biggest public critics of BTC cryptocurrency in the period 2017-2019. While Jamie Dimon called Bitcoin a scam that will collapse after a certain period of time, the Bitcoin price and the whole ecosystem continued to develop.
However, with the interest of more and more institutional investors, including MicroStrategy and Tesla, Bitcoin has become so big that it can no longer be ignored. These institutional investors already own a significant portion of Bitcoin’s circulating supply. A JPMorgan fund could have a very positive impact on the BTC price as more and more wealthy JPM clients invest money in the sector.
Hot News: JPMorgan Chase Launches a Bitcoin Fund
So, JPMorgan Chase has also changed its opinion about Bitcoin. The bank will soon launch a Bitcoin fund, a basket of various stocks from companies that directly invest in Bitcoin such as MicroStrategy and Tesla. NYDIG will act as custodian. More details aren’t yet known, neither NYDIG nor JPM commented on the new project. Among other things, it’s unclear what JPMorgan means by the term ‘active fund’.
Demand for Crypto Assets Is Increasing
Institutional investors are increasingly interested in crypto assets, primarily in Bitcoin, which has been active since 2010. Financial institutions are also looking for ways to offer their customers products that ensure high returns. Morgan Stanley has also launched a managed Bitcoin fund. These are big names that contribute to Bitcoin’s popularity. Financial institutions like this have a certain reputation and an average investor will feel more confident investing in this sector.
This also applies to investors like MicroStrategy, but especially to Tesla. Elon Musk enjoys credibility among his direct followers. This year has shown what happens to the Bitcoin price when a personality like Elon Musk takes a positive view of Bitcoin and also invests more than a billion US dollars in it. The price increased significantly — a scenario that could repeat itself with the entry of new large investors.