Mark Weaden
JPMorgan expands its asset offering by opening up five cryptocurrency funds to all clients.
Earlier in the year, we saw JPMorgan Chase open up unique portfolios to special clients, allowing those clients to add cryptocurrencies to their portfolios. This was a pilot scheme that has now led to the opening of this offering from one of the biggest banks in the world.
Customers will be able to speak to advisors, who will be promoting the scheme, and access one of the five different cryptocurrency funds. Rather than keeping these for special clients, JPMorgan wealth management will be offering investment advice to all clients seeking to dip their toes in the crypto space.
First crypto offering from a major bank
The offering marks the first major bank to do so, expanding its crypto trading access beyond the super-wealthy. The volatility of the market and high-risk portfolio were saved for clients who could be personally warned of the risks of investment. However, JPMorgan must now feel confident enough in the crypto market to offer it up to the public.
JPMorgan has given the green light for financial advisors—as well as giving the appropriate training on the crypto market—to serve clients interested in crypto investments. A memo was sent out earlier this week informing advisors that as of July 19, five cryptocurrencies would be offered to clients. Those funds will be available through Grayscale Investments and are as follows:
- Bitcoin Trust
- Bitcoin Cash Trust
- Ethereum Trust
- Ethereum Classic Trust
- Osprey Funds’ Bitcoin Trust
Who will have access?
A report from inside the company claims that the new offering applies to any and all clients seeking investment advice with JPMorgan. This will include those clients that are autonomous and investing through the Chase trading app, which is a commission-free way to invest with the company.
As was the case before, the super-rich and more affluent clients will have the same access to these five funds as any other client now does, though these clients will be managed by the company’s private bank.
What a change a few years can make, from a company that was once threatening employees with sacking for trading in Bitcoin to now offering it to all its clients. The move from JPMorgan will likely act as a catalyst for other major financial institutions in the US to act in a similar way, as clients continue to demand access to crypto and digital currency classes. We’ve seen Citigroup, Goldman Sachs, and Morgan Stanley already offer crypto options, but not to retail clients.
