JPMorgan Chase has announced it will allow clients to purchase Bitcoin (BTC), marking a notable development in the mainstream acceptance of cryptocurrency. However, CEO Jamie Dimon, a long-time critic of Bitcoin and the broader crypto market, clarified that his personal views on the digital currency remain unchanged.
Clients Can Buy Bitcoin, But Skepticism Remains
During JPMorgan’s annual investor day on Monday, Dimon stated, “We are going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients.”
This decision comes amid a growing trend among financial institutions to embrace cryptocurrency, with competitors like Morgan Stanley already offering access to spot Bitcoin exchange-traded funds (ETFs) for qualifying clients since August.
Despite this progressive move, Dimon reiterated his skepticism about Bitcoin, citing concerns related to money laundering and the lack of clarity surrounding ownership.
He pointed out that Bitcoin has been associated with “the sex trafficking, the terrorism,” indicating his belief that its primary use cases are problematic. “I don’t think you should smoke, but I defend your right to smoke,” Dimon remarked, adding, “I defend your right to buy Bitcoin.”
JPMorgan Explores Direct Crypto Investments
While JPMorgan has primarily limited its crypto offerings to futures-based products, the bank is reportedly considering providing clients access to Bitcoin ETFs, which would allow for a more direct investment in the cryptocurrency.
Historically, Dimon has been vocal about his opposition to Bitcoin; during a Senate hearing in late 2023, he described it as “worthless” and claimed that its only true use case is for criminal activity.
His skepticism was further emphasized at the 2024 World Economic Forum in Davos, where he dismissed BTC as “the pet rock,” expressing frustration over the ongoing media discussions about it. “This is the last time I’m talking about this with CNBC, so help me God,” he declared.
The context for JPMorgan’s decision comes amid a changing regulatory landscape in the US. Following the election of President Donald Trump, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) began to ease their anti-crypto guidance, allowing banks greater flexibility in their dealings with digital assets.
Although the Federal Reserve (Fed) has issued notices restricting certain crypto activities, banks can now custody cryptocurrencies, which was previously hindered by an accounting rule known as SAB 121.
At the time of writing, BTC is trading at $105,400, which is just 3% below its record high of $109,000 achieved during the first quarter uptrend of the market. Looking at monthly gains, the market’s leading cryptocurrency has recovered 24% after dropping sharply to $74,000 in April.
Featured image from DALL-E, chart from TradingView.com