JP Morgan Opens Crypto Trading to Retail Clients Through Select Products

The banking firm’s surprising reversal indicates the attitude of the mainstream has softened towards cryptocurrency initiatives.

Dardania Havolli
July 23, 2021
Blockchain News

JP Morgan Opens the Gates

US banking giant JP Morgan will now allow retail clients access to crypto trading. This will make JP Morgan the first US bank to offer all wealth-management clients the opportunity to acess Bitcoin alongside other cryptocurrencies.

The move was a fairly unanticipated turn considering JP Morgan CEO, Jamie Dimon, had voiced his distrust of crypto only months previously.

Only months before, Dimon stated at The Wall Street Journal CEO Council summit, “I’m not a Bitcoin supporter. I have no interest in it.” But the words that followed underlined the direction and energy behind the crypto marker. “On the other hand, clients are interested, and I don’t tell clients what to do.”
At the time the founder and CEO of Osprey Funds, Greg King, was much more upbeat at the prospect. “We are excited to be onboarded to the JP Morgan wealth platform.OBTC remains the lowest-priced publicly traded Bitcoin fund in the U.S. and we believe JP Morgan’s clients will see value in the product,” he told Forbes.

Indirect Benefit

Many were justifiably excited as Business Insider confirmed that JP Morgan’s wealth management division, which deals with over $630 billion, can now accept orders to purchase five crypto products. 

An important caveat here is that though retail investors will be given the chance to invest in crypto, it will be indirect.

Retail investors can look forward to investing in Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic Products and Osprey’s Bitcoin Trust. 


What is Indirect Trading?

Trust products offered through Greyscale and Osprey allow for ‘price exposure’ maneuvers that manage to avoid custody problems. 

The term ‘indirect’ trading means clients are not able to invest in crypto directly through their own accounts. The ‘indirect trading’ route is designed to be effective in avoiding red tape. 

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Dardania Havolli

Dardania is an experienced researcher, editor and writer who is currently completing his PhD in Creative Writing. He is passionate about blockchain technology and the impact it will go on to have on our lives.

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