JPMorgan could make its first bitcoin fund available to private rich clients as soon as this summer, report says

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JPMorgan CEO Jamie Dimon.

JPMorgan is in the process of offering an actively-managed bitcoin fund to its private wealth clients for the first time, CoinDesk reported on Monday.

The fund could roll out as soon as the summer of 2021, the report said, citing two sources. Crypto-focused financial services company NYDIG is said to serve as the bank’s custody provider.

An actively-managed fund implies that money managers would supervise specific decisions about how the fund’s investments are carried out. Passively-managed funds, like those offered by Pantera Capital and Galaxy Digital, simply track a crypto market index without being touched by a money management team.

JPMorgan, the largest US investment bank by assets, has gradually shifted its stance on cryptocurrencies after labelling them as fraudulent four years ago.

CEO Jamie Dimon said in a 2018 interview he doesn’t “really give a s–t” about the digital asset and didn’t expect it to rival fiat currency. More recently, he listed fintechs as one of the “enormous competitive” threats to banks in an annual shareholder letter released this month.

The bank now frequently publishes research reports about bitcoin, and said last week the worst of the recent liquidation have likely passed. “Bitcoin liquidity is likely to remain robust and resilient; depth on major exchanges has continued to drop less and recover faster than other asset classes,” JPMorgan strategists said in a note.

Bitcoin rose 10% on Monday to trade near $53,000 after tumbling to its lowest level in nearly two months.

JPMorgan declined to comment on the report when contacted by Insider.

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Jamie Dimon says ‘gangbuster’ growth is in store for the US but too much fiscal stimulus is a risk

Jamie Dimon 2019
Jamie Dimon, Chairman & CEO of JP Morgan Chase & Co, speaks during the Bloomberg Global Business Forum in New York on September 25, 2019. (Photo by Kena Betancur / AFP) (Photo by KENA BETANCUR/AFP via Getty Images)

  • The US economy is on the verge of a rapid expansion this year and in 2022, said the billionaire head of JPMorgan Chase. 
  • CEO Jamie Dimon said unemployed and small businesses “definitely need help” from US officials to cope with the COVID pandemic. 
  • There is a risk of overheating from too much fiscal stimulus, he said.  
  • Visit the Business section of Insider for more stories.

The world’s largest economy looks to be set for a “gangbuster” pace of expansion through next year but US officials should be cautious about unleashing too much fiscal stimulus into the system, said JPMorgan CEO Jamie Dimon said Monday.

His observations come as a $1.9 trillion economic stimulus proposal headed toward a vote in the US Senate just days after lawmakers in the House of Representatives passed the bill.

A new round of stimulus would follow the $900 billion bipartisan coronavirus relief package signed off by then-President Donald Trump in late December

“There’s a very good chance you’re going to have a gangbuster economy for the rest of this year and easily into 2022,” said Dimon during an interview with Bloomberg TV. “And the question is, ‘does that overheat everything?’ and we just don’t know yet,” he said.

In terms of that risk, Dimon said, “I wouldn’t worry too much about it, but I would suspect there’s a pretty good chance that you’re going to see rates going up and people starting to worry about that at one point.”

Dimon quickly added: “I’ve been very clear: I would not buy 10-year Treasuries, just so you know.”

Before his prediction of strong economic growth for this year and next, Dimon said there are ‘”legitimate complaints” that the current stimulus bill contains items “that have nothing to do with COVID,” but that many Americans do need financial assistance to cope with the pandemic.

“Unemployed, they definitely need help. Small businesses, they definitely need help,” the JPMorgan chief said. 

“I don’t know if you know this but [in] half the states, revenues went up. They didn’t go down. Do they need help? Are we just throwing money at people at one point?”

He urged officials in his remarks to “try not to overdue it too much.”

 

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