Kent Thune
3 min read
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In a major shift, JPMorgan Chase CEO Jamie Dimon announced on Monday that the bank will now allow its clients to purchase Bitcoin, marking a notable departure from his long-standing skepticism toward the cryptocurrency.
Despite his personal reservations—having previously labeled Bitcoin as "worthless" and likening it to a "pet rock"—Dimon acknowledged the growing demand from clients for access to digital assets.
While JPMorgan will not provide custody services for Bitcoin, it will include the holdings in client statements, aligning the bank more closely with competitors like Morgan Stanley, which began facilitating Bitcoin purchases for clients in August 2024.
This move by JPMorgan underscores the expanding institutional adoption of Bitcoin, the largest cryptocurrency by market capitalization.
The $4 trillion financial services giant joins a growing list of major financial institutions, including Morgan Stanley and Bank of America, that have started offering Bitcoin-related services to meet client demand.
However, not all firms are embracing this trend. Vanguard, the world's second-largest investment firm, continues to prohibit trading of spot Bitcoin ETFs on its brokerage platform, maintaining a cautious stance toward cryptocurrency investments.
The launch of the first spot Bitcoin ETFs in January 2024 marked a turning point for institutional involvement in the cryptocurrency market. Firms like BlackRock and Fidelity quickly entered the space, offering clients exposure to Bitcoin through regulated investment vehicles.
Morgan Stanley followed suit, allowing its wealth advisors to pitch spot Bitcoin ETFs and exploring cryptocurrency trading through its E*Trade platform.
These developments reflect a broader shift in the financial industry, as traditional institutions seek to accommodate client interest in digital assets. The success of these ETFs, which have accumulated significant assets under management, indicates a growing acceptance of Bitcoin as a legitimate investment option.
Despite the momentum in the industry, Vanguard remains a notable holdout. The firm has explicitly stated that it has no plans to launch its own Bitcoin ETF or offer crypto-related products on its platform. Vanguard's leadership cites concerns about the current state of crypto as an asset class and questions its enduring investment merit.
Interestingly, Vanguard's new CEO and previous BlackRock executive, Salim Ramji, oversaw the firm's launch of its Bitcoin exchange-traded fund, the iShares Bitcoin Trust ETF (IBIT). Despite his background, Ramji has affirmed Vanguard's stance, emphasizing the company's commitment to its core values and client needs over following market trends.
