JPMorgan Chase CEO Jamie Dimon has revealed that the bank will soon allow customers to purchase Bitcoin, though it won't offer custody services.
"We will allow customers to buy Bitcoin," Dimon stated at JPMorgan's annual investor day on May 19. "We won’t custody it, but we’ll display it on customer statements."
According to CNBC, Dimon reiterated his long-standing skepticism toward crypto assets, particularly citing their use in money laundering, illegal trafficking, and terrorist activities.
"I don’t think you should smoke, but I respect your right to smoke. Similarly, I respect your right to buy Bitcoin," he added.
Key Developments:
- Bitcoin ETF Access: JPMorgan will reportedly provide clients with exposure to Bitcoin ETFs, expanding beyond its current futures-based crypto products.
- Competitor Moves: Morgan Stanley has already begun offering spot Bitcoin ETFs to eligible clients. Since their January 2024 launch, U.S. spot Bitcoin ETFs have attracted nearly $42 billion in inflows.
Dimon’s Criticism of Bitcoin:
Dimon has consistently dismissed Bitcoin, calling it a "fraud" in 2018 and "worthless" during the 2021 bull market. At a 2023 Senate hearing, he argued:
- Primary Use Case: Facilitating criminal activity (e.g., money laundering, tax evasion).
- Personal Stance: "If I were the government, I’d shut it down."
At the 2024 World Economic Forum in Davos, Dimon mocked Bitcoin’s utility after its price surpassed $100,000: "Bitcoin does nothing. I call it a ‘pet rock’."
FAQ Section
Q1: Will JPMorgan custody Bitcoin for clients?
A: No. Customers can buy Bitcoin, but the bank won’t hold it.
Q2: How will JPMorgan’s Bitcoin services differ from competitors?
A: It focuses on ETF access, avoiding direct digital asset custody.
Q3: What’s Dimon’s main objection to Bitcoin?
A: He views it as a tool for illicit activities with no intrinsic value.