JPMorgan Chase, one of the biggest financial conglomerates in the world, could be preparing to roll out a Bitcoin fund in the summer, according to CoinDesk.
Despite the dislike of the company’s Chief Executive Officer (CEO) Jamie Dimon, who has in the past referred to the biggest cryptocurrency as a “fraud”, a source told cryptocurrency news outlet CoinDesk that NYDIG could serve as the custody provider for the fund.
According to more sources, the fund would be actively managed, representing a shift in the approach of the traditional finance industry in the United States, which has been dominated by companies like Galaxy and NYDIG.
While it is expected that the fund could be available as soon as summer, it would only be available for private wealth clients of the $3 trillion-valued institution.
While Dimon’s views on Bitcoin have changed after the original comments in 2017, then telling Fox Business that he believed in the technology and regretted calling it a fraud, with the institution he directs then launching its own blockchain-based system.
With JPMorgan possibly joining the likes of Morgan Stanley’s approach to the cryptocurrency market, the ecosystem is likely to enjoy added legitimacy among institutional investors which could result in an increase in market capitalization and integration on current economic systems.
Bitcoin Bounces to $54k As Market Recovers
After reaching its lowest value ($47.4k) in the last 2 weeks back on April 25th, Bitcoin has bounced to reach the $54k mark, making what seems to be the recovery among the crypto market recent rout.
While the cryptocurrency is still far from its all-time high of $64.8k of April 14th, experts believe that the bounce should continue during the upcoming week but it is still likely to meet resistance around the $62 mark.
Bitcoin’s bounce is expected to have an impact on the rest of the crypto market, which despite a constant process of decoupling is still highly influenceable by the biggest cryptocurrency’s performance.
Most top projects in the cryptocurrency market experienced a crash in recent weeks, with few exceptions like Solana presenting gainst amid the turbulent times. This new week, however, has seen an increase in value for all of the top 15 projects, excluding stablecoins, at the time of writing, according to Coingecko data.
The crash experienced by the crypto market was also shared by the stock market, with both being the result of rumors about tax decisions taken by the Biden Administration in the United States.
Elon Musk Faces Backlash After Tesla’s Sale of Bitcoin
Tesla made the news months ago for its acquisition of $1.5 billion worth of Bitcoin and the decision to allow the purchase of its goods via cryptocurrency. Now, it has become public that the company sold 10% of its BTC holdings during the first quarter of 2020, generating $101 million in income from the sale.
Figures like Dave Portnoy were quick to join the debate that the news generated, Tweeting: “So am I understanding this correctly? @elonmusk buys #bitcoin. Then he pumps it. It goes up. Then he dumps it and makes a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don’t be last 1 #HODLing the bag.”
Musk was quick to point out that Portnoy had misunderstood the situation by Tweeting back: “No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on a balance sheet.”
Tesla’s CEO has been a target of criticism by Crypto enthusiasts for its “pumping” of cryptocurrencies like DogeCoin and Bitcoin, which he is known to be a supporter of and alleged holder, which some people seem like an attempt to boost his own gains.
However, his support for the cryptocurrency ecosystem has undeniably been part of the recent success of the ecosystem, bringing the new technology to investors who wouldn’t have to know about it otherwise.