JPMorgan Chase, America’s largest bank, has recently shown a growing acceptance for Bitcoin by disclosing Bitcoin exchange-traded fund (ETF) holdings in a recent filing. The bank owns shares in Bitcoin ETFs managed by BlackRock, Bitwise, and Fidelity. Despite the relatively modest total of $1.2 million in holdings, the move is seen as significant, symbolizing further consolidation of Bitcoin in the financial market.
While JPMorgan’s exposure to Bitcoin might currently be relatively small, an analysis by Bloomberg indicates the actual figure could be higher. The current figures do not take into consideration potential ‘short’ positions or derivatives. Of note, Blackrock’s ETF has already attracted 250 holders, an impressive number for its first quarter of availability.
The move coincides with statements made by BlackRock’s Robert Mitchnick that major institutions such as pension funds are preparing to engage with Bitcoin ETFs. Despite receding inflows, Mitchnick stated that there was still strong demand for Bitcoin exposure. Alongside JPMorgan, other giants in the sector such as Wells Fargo and Edmond de Rothschild have also disclosed their Bitcoin ETF holdings, estimating at $4.2 million worth of shares.
However, not everyone in JPMorgan is enthusiastic about Bitcoin. CEO Jamie Dimon continues to be a sceptic, previously suggesting that the US government should bring the curtain down on the largest cryptocurrency, even going as far as to refer to it as a “Ponzi scheme”.
Despite this, JPMorgan continued its crypto ventures by launching a passively managed Bitcoin fund for its wealth clients in 2021. Concurrently, last year saw the bank feature among the authorized participants for BlackRock’s record-breaking Bitcoin ETF.