JPMorgan Chase to Allow Clients to Purchase Bitcoin (BTC)

The move marks a notable development in the mainstream acceptance of cryptocurrency. However, CEO Jamie Dimon, a long-time critic of Bitcoin and the broader crypto market, clarified that his personal views on the digital currency remain unchanged.

JPMorgan Chase will allow clients to buy bitcoin (BTC), a move that highlights the mainstream acceptance of cryptocurrency despite the personal skepticism of CEO Jamie Dimon.

The bank’s decision to offer direct bitcoin products was announced during its annual investor day on Monday. While competitors like Morgan Stanley began offering access to spot bitcoin exchange-traded funds (ETFs) for qualifying clients in August, JPMorgan is venturing into this realm now.

“We’re going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients, and if you want to buy it, we’re not going to tell you no. I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin,” Dimon stated.

However, he also expressed his skepticism towards the cryptocurrency, highlighting concerns over money laundering and the lack of clarity surrounding bitcoin ownership.

“It’s been used for—frankly, they’ll tell you—the sex trafficking, the terrorism, they’ll tell you all the stories. I don’t like any of those things. I prefer petty cash crimes, petty drug crimes—no, I’m kidding!” Dimon remarked with a smile.

Highlighting his skepticism further, he stated that bitcoin has been covered "a bit too much" by the media and compared it to "the pet rock."

“This is the last time I’m talking about this with CNBC, so help me God. I met the president of a large country at the last breakfast, and we talked about petty cash crimes, petty drug crimes—they’ll tell you all the stories about bitcoin. But they’re doing petty cash crimes and petty drug crimes. I don’t like any of those things. But they’ll tell you it’s the only true use case for bitcoin.”

The bank is planning to offer clients access to bitcoin ETFs as it expands its digital asset offerings.

While JPMorgan has been offering futures-based products in the crypto space, it is venturing into offering more direct investment products in bitcoin.

The announcement comes amid a broader shift in the U.S. regulatory landscape towards cryptocurrencies.

Following the election of President Donald Trump, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) began unwinding their strong guidance against cryptocurrencies, granting banks greater latitude in engaging with digital assets.

Although the Federal Reserve (Fed) has issued notices restricting certain crypto-related activities, such as engaging in mining or lending, banks are now able to custody cryptocurrencies, overcoming a previous obstacle posed by an accounting rule known as SAB 121, which had deterred custody operations.

At the time of writing, BTC is changing hands at $105,400, which is just 3% below its record high of $109,000 during the first quarter uptrend of the market. In terms of monthly gains, the market’s leading cryptocurrency has recovered 24% after dropping sharply to $74,000 in April.