JPMorgan Reportedly Launching an Actively Managed Bitcoin Fund

JPMorgan Chase is fully embracing digital assets as the banking giant is preparing to launch an actively managed Bitcoin fund, according to a Coindesk report published on Monday.

Though the Wall Street giant did not announce anything officially, multiple sources of the publication revealed that the bank might launch the fund as soon as this summer. Further, the report outlined that the lender will partner with NYDIG for its crypto custodial needs.

This is a massive turnaround on the part of the bank, given the harsh criticisms of JPMorgan CEO Jamie Dimon on Bitcoin. Dimon went as far as calling the digital currency a complete ‘fraud’ but toned down his distaste over the years. However, he pointed to the inevitable regulatory backlash on the crypto space and even said that Bitcoin is ‘not my cup of tea’.

The direct adoption of Bitcoin by JPMorgan shows the high institutional interest in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. The bank's Bitcoin fund will be available only to the private investors, the crypto-focused media detailed.

Wall Street's Bet on Bitcoin

While JPMorgan is yet to launch its Bitcoin fund, rival Morgan Stanley is already offering three Bitcoin funds to its wealthy client base. However, Morgan Stanley tapped the services of Galaxy and NYDIG, which only gives crypto exposure without any active fund management.

Though Dimon was harsh on Bitcoin, his bank continuously posted a bullish outlook on Bitcoin. In a note published earlier this month, the bank kept a $130,000 theoretical long-term price target for Bitcoin.

Meanwhile, JPMorgan is highly invested in Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology and is testing JPM Coin for internal transaction settlement. Furthermore, the bank launched an indirect crypto-adjacent investment product last month, consisting of shares of the companies like MicroStrategy, Riot Blockchain, NVIDIA, PayPal and a few other companies with high stakes in the crypto economy.