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JPMorgan The First US Bank to Grant All Wealth Clients Access to Crypto Funds

JPMorgan The First US Bank to Grant All Wealth Clients Access to Crypto Funds

JP Morgan becomes the first major U.S. bank to provide access to crypto funds to all its wealth clients.

American banking giant JPMorgan Chase & Co has provided access to all its wealth clients to several cryptocurrency products, including Grayscale Bitcoin Trust (GBTC). The move is significant, as it makes the JPMorgan the first major financial institution in the United States to do so.

Five Crypto Funds Approved for JPMorgan Clients

The banking giant released a memo to its financial advisors earlier this week, giving them the green light to give all retail wealth clients access to crypto funds, according Business Insider.

JPMorgan told its advisors that since July 19, they are able to take buy and sell orders from wealth clients for five crypto funds.

Four of the funds are powered by leading digital asset manager Grayscale Investments and one from Osprey Funds. The approved funds are: Grayscale Bitcoin Trust, Grayscale Bitcoin Cash Trust, Grayscale Ethereum Trust, Grayscale Ethereum Classic Trust, and Osprey Bitcoin Trust.

Unsolicited Crypto Trades Only

However, the bank’s advisors are only allowed to execute “unsolicited” crypto trades. In other words, JPMorgan advisors can only take buy or sell orders based on clients’ requests. They are not allowed to recommend any of the crypto products to customers.

The new service is available to all of the bank’s clients looking for investment options, including Chase trading app users, ultrarich clients, and those whose assets are managed by JPMorgan’s advisors.

Increased Client Demand for Bitcoin

A few days ago JPMorgan’s director of Asset and Wealth Management, Mary Callahan Erdoes, revealed in an interview that most of the bank’s clients are demanding crypto services as they see bitcoin as an asset class.

Erdoes noted that to maintain its client base, the financial powerhouse will continue to provide crypto products to its customers to meet up with the growing demand even though it still has not classified cryptocurrency as an asset class.

More Big Banks to Follow

JPMorgan is the first major financial institution in the U.S. to offer its wealthy clients access to crypto funds, but it is very likely that rival banks like Goldman Sachs and Morgan Stanley might join the bandwagon in no distant time.

Morgan Stanley has already taken the first step by filing with the SEC to allow its clients to gain bitcoin exposure through the Grayscale’s Bitcoin Trust or cash-settled futures.

Source: JPMorgan The First US Bank to Grant All Wealth Clients Crypto Fund Access – Fintechs.fi

Comments

Oh ya 3 year ago
The bank likely bought a bunch themselves and now realize they are likely going to crash in value and will unload them on their own clients

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