Despite the fact that Bitcoin has lost in value over the past few months, interest in it remains high. JPMorgan CEO Mary Callahan Erdoes points out that the vast majority of their clients see BTC as a lucrative asset class.
It is worth noting that JPMorgan’s management is very wary of cryptocurrencies as valuable assets worth investing in. However, under pressure from the bank’s clients, it is forced to admit that demand for Bitcoin has skyrocketed in recent times.
It is clear that the bank forced to react to the requirements of customers. And there is no point in losing them. Therefore, the bank announced that it will continue to provide its clients with services related to cryptocurrencies.
Mary Erdoes also reported that clients say they perceive Bitcoin as a promising asset class. And want to invest in it. Therefore, the task of the bank is to provide comprehensive support to clients in such a situation.
An interesting fact – back in February, the co-chairman of the bank, Daniel Pinto, announced that there was no significant demand for BTC.
Now everything has changed, and a lot of clients want to invest in a crypto asset. Therefore, the bank was forced to change its policy in relation to cryptocurrencies.
Experts are still concerned about the volatility of the cryptocurrency market
At the same time, Erdoes acknowledged that heated debate continues among financial experts and consultants. About whether cryptocurrencies can be recognized as a new asset class. Basically, experts worried about the excessive volatility of the cryptocurrency market. Also, a top manager of the bank said that cryptocurrencies have yet to prove their worth as a store of value. And then the volatility will “evaporate by itself”.
Note that JPMorgan doesn’t yet offer customers the option to buy Bitcoin directly. But they can invest in stocks of companies such as MicroStrategy, Square and Tesla, which hold the cryptocurrency in their reserves.
JPMorgan’s position on Bitcoin and cryptocurrencies remains mixed
Back in 2017, JPMorgan CEO Jamie Dimon considered Bitcoin to be nothing more than a fraudulent project, and those who would deal with it would leave their jobs.
Then he apologized for his remarks. In 2020, the bank launched its cryptocurrency, began to invite developers who had previously worked with Ethereum to further study cryptocurrencies.
But J. Dimon’s skeptical attitude towards cryptocurrencies has not disappeared. In May, he reiterated that it is best to stay away from cryptocurrencies, although he admitted that the demand for them is very high.
In June of this year, JPMorgan analysts predicted that the cost of Bitcoin could drop to $ 25 thousand. They maintain a negative outlook for the main cryptocurrency.
At the same time, the bank continues to recruit blockchain specialists and is developing its own digital currency.
In turn, Goldman Sachs recognized Bitcoin as an asset class at the end of May. Then the bank reported on the growing demand for cryptocurrencies among institutional investors and asset managers. Goldman Sachs was also the first among the largest US investment banks to create a department for cryptocurrency trading. The new department has already successfully traded two types of bitcoin-related derivatives.