TL;DR Breakdown
- JP Morgan bank okays access to crypto products for clients.
- Clients are open to only five cryptos.
- Other US Banks are likely to follow JP Morgan footsteps.
JP Morgan bank has become the first major U.S. bank to give all its wealthy clients access to crypto funds. According to Business Insider reports, the bank gave its wealth management the approval to access Bitcoin and other cryptocurrency funds.
Business Insider reports that according to a memo, clients of JP Morgan bank can buy and sell five cryptocurrency products through JP Morgan advisors.
Advisors have access to four Grayscale Investments products and one Osprey Funds product. Bitcoin, Ethereum, Bitcoin Cash, and Ethereum Classic via Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, and Ethereum Classic vehicles are cryptos JP Morgan banks clients can get access to starting from the 19th of July.
They are also able to invest in Osprey Fund’s Bitcoin Trust. However, there is a caveat as advisors can only execute “unsolicited” crypto trades. In other words, JPMorgan advisors can only take buy or sell orders based on clients’ requests.
JP Morgan bank advisors are not allowed to recommend any crypto product to customers.
However, all clients of the banks seeking valuable investments for their money, including those who use the Chase trading app, ultrarich clients, and those whose assets are managed by JPMorgan’s advisors, can access crypto products.
The bank CEO, Jamie Dimon, who was previously against Bitcoin calling the number one crypto a fraud, noted that the bank is now becoming more open to the crypto world.
Dimon now speaks more often of crypto as JP Morgan now provides banking services to exchange firms like Gemini and Coinbase. He also acknowledged that more clients demand for crypto products in the bank.
Beyond JP Morgan Bank, others to follow
JP Morgan, after debuting in the crypto world, rival banks like Goldman Sachs and Morgan Stanley are most likely going to join the bandwagon soon.
Morgan Stanley is likely to be the first to come in as it has filed with the SEC to allow its clients to gain exposure to Bitcoin.
