JPMorgan is the first major U.S. bank to offer access to retail crypto funds

[ad_1]

In a first for a major US bank, JPMorgan offers some of its retail clients a choice of five funds.

JPMorgan Chase made history as the first major U.S. bank to offer crypto funds to retail clients beyond the very wealthy, according to Insider. The banking giant told wealth management advisers that from July 19 they could receive trading orders for five funds invested in the asset class: four are offered by Grayscale Investments and one is available from Osprey Funds.

Almost 70% of American adults do not understand cryptocurrency. Insider Information

The funds provide investors with indirect exposure to Bitcoin, Bitcoin Cash, Ethereum, and Ethereum Classic. Investment vehicles are available to JPMorgan clients who use a variety of wealth management products: self-directed clients who use the bank’s Chase trading application, high-net-worth users of JPMorgan Advisors, and bank clients. ultra-rich private individuals.

The bank limits transactions to “unsolicited” transactions, which means that advisers can only execute transactions at the client’s request.

JPMorgan’s move marks a 180-degree turnaround from the grim view of crypto assets it previously took: In 2017, CEO Jamie Dimon threatened to fire employees who traded Bitcoin. Since then, Dimon has relaxed his stance on crypto, but he recently pointed out that he is still not a fan. Despite the views of JPMorgan’s top boss, his clients are clamoring for crypto as an investment, Mary Callahan Erdoes, head of the wealth management division, told Bloomberg.

By jumping on the crypto bandwagon, JPMorgan can discourage exits from its wealth management clients who wish to get into cryptocurrency to fintechs like Robinhood and Coinbase, and keep those clients within its ecosystem. The move could also help the bank hold onto deposits from Chase’s retail bank customers that could lead them to buy crypto.

The decision of the largest banking player in the United States to offer broad retail access to crypto will help legitimize the management of these assets by incumbents. Watch out for other established US banks to take action on retail crypto investing. If JPMorgan’s move sets a trend, crypto trading could quickly go from a good-to-have to a need-to-have.

Want to read more stories like this? Here’s how to get there:

Join fellow Insider Intelligence customers who receive daily banking forecasts, briefings, charts, and research reports in their inbox. >> Become a client Explore related topics in more depth. >> Browse our coverage

Current subscribers can access the entire Insider Intelligence content archive here.

[ad_2]