Leading US-based investment bank, JPMorgan, has given its financial advisors the green light to give all its wealth-management clients access to digital currency funds, which makes it the first major bank to ever made such a move.
According to the report, the major investment bank told its advisors via a memo earlier this week that they can now take orders to trade five cryptocurrencies, four from Grayscale Investments and the remaining one from Osprey Funds, effective 19th July 2021.
The report reads in part as follows:
“JPMorgan’s advisors can execute only “unsolicited” crypto trades, meaning advisors cannot recommend the products but are allowed to buy or sell on the behalf of a client’s request. The funds JPMorgan has approved include Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, and Ethereum Classic vehicles, as well as Osprey Funds’ Bitcoin Trust.”
The report further stated that the directive applies to all JPMorgan clients seeking investment advice, including its bank’s self-directed clients that use commission-free Chase trading app, mass affluent clients whose assets are managed by financial advisors under JPMorgan Advisors, and ultrarich clients serviced by the private bank.
In a development first reported by CoinDesk in April, JPMorgan revealed that it was getting ready to offer an actively managed bitcoin fund to private wealth clients.
It can be recalled that back in 2017, Jamie Dimon, the CEO of JPMorgan threatened to fire any employee caught trading Bitcoin (BTC), but things seem to have changed drastically for the bank in relation to cryptocurrency. This recent move has been termed as a milestone in the digital asset offerings of the bank.
The growing client interest in crypto gave the CEO no choice but to open the door of the bank for crypto-related activity. However, he still remains skeptical about the asset class, considering his comment in May.
According to Mary Callahan Erdoes, asset and wealth-management chief at JPMorgan, many of the bank’s clients view cryptocurrency as an asset class, and they are interested in investing in it.