Bitcoin has continued to rise in the past few months, which is arousing the interest of wealthy investors in a new way?

JPMorgan is preparing to launch a bitcoin fund for wealthy customers, the latest sign that Wall Street intends to open its arms to the world's largest cryptocurrency after soaring in recent months.

The actively managed fund will be launched as soon as this summer, coindesk reported Monday, citing people familiar with the matter. A person familiar with the matter said that nydig will act as the trustee. As the decision has not yet been made public, people familiar with the matter asked for anonymity

Most of the Wall Street banks used to "sit on the sidelines" before, and with the growing popularity of bitcoin and other digital currencies, they also began to struggle whether to provide investment channels to customers. JPMorgan has been at the forefront in this area, accepting bitcoin exchanges coinbase Inc. and Gemini Trust Co. as bank customers last year. The bank also turned to encryption technology to speed up corporate payments and launched JPM coin in 2019

People familiar with the matter said the move was an important step for Wall Street to accept bitcoin as an asset class and a decision made by JPMorgan Chase after its customers asked for exposure to cryptocurrency. In the past year, the rise of bitcoin has put pressure on Wall Street companies to consider getting involved in this emerging asset class.

But for now at least, JPMorgan only allows its wealthier customers to hold bitcoin: the bank believes that bitcoin is suitable for customers with strong risk tolerance and has assets under management of at least $2m at the bank.

Investment institutions need at least $5 million in bank assets to qualify for bitcoin investment. In either case, the customer's account opening time in the bank must be 6 months or more.

Some investors may find that JPMorgan's high target price for bitcoin is somewhat contradictory. Jamie Dimon, JPMorgan's chief executive, once called the cryptocurrency a "fraud" and said the bitcoin craze was reminiscent of the tulip craze of the 17th century. However, Dimon is more supportive of blockchain technology as the basis of digital currencies such as bitcoin. JPMorgan has invested a lot of money in this field, created its own digital currency JPM coin, and set up a new department dedicated to blockchain.

(2021-4-29)