JPMorgan boss says bank users can soon buy Bitcoin

Jamie Dimon, the CEO of JPMorgan, said his bank will soon allow its clients to buy Bitcoin, but it won’t custody the cryptocurrency.

“We are going to allow you to buy it,” Dimon said at JPMorgan’s annual investor day on May 19. “We’re not going to custody it. We’re going to put it in statements for clients.”

CNBC reported that Dimon also remarked on his long-held skepticism about crypto assets, pointing to their use in money laundering, sex trafficking and terrorism.

“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” he said.

JPMorgan will offer clients access to Bitcoin (BTC) exchange-traded funds (ETFs), CNBC reported, citing sources familiar with the situation. Until now, the firm has limited its crypto exposure primarily to futures-based products, not direct ownership of digital assets.

Related: Morgan Stanley advisers can officially pitch Bitcoin ETFs

JPMorgan rival Morgan Stanley has also moved to offer spot Bitcoin ETFs to qualifying clients. Spot Bitcoin ETFs in the US have seen significant adoption, with almost $42 billion in total aggregate inflows since they launched in January 2024. 

Dimon has long been skeptical of Bitcoin, labeling it a scam that he had no interest in buying in 2018 and calling it “worthless” during the 2021 crypto bull market.

“I’ve always been deeply opposed to crypto, Bitcoin, etc.,” he said during a Senate Banking Committee hearing in 2023. “The only true use case for it is criminals, drug traffickers, money laundering, tax avoidance.”

“If I were the government, I’d close it down,” he said.

At the 2024 World Economic Forum in Davos, Switzerland, Dimon said Bitcoin “does nothing. I call it the pet rock,” which came after the asset topped $100,000 for the first time.  

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest