JPMorgan wealth management advisors will be able to buy and sell these funds on clients’ demands. However, they cannot propose or recommend any crypto investment.
Earlier this week, Wall Street giant JPMorgan Chase & Co (NYSE: JPM) gave approval to its advisors to offer crypto funds to its retail wealth management clients. This is for the first time that a US bank is considering offering crypto investment options to retail clients.
As reported by Business Insider, the banking giant is offering five different crypto funds. This includes a bunch of Grayscale products like the Bitcoin Trust (GBTC), Ethereum Trust (ETHE), Ethereum Classic Trust (ETCG), Bitcoin Cash Trust (BCHG). Besides, it also offers the option to invest in Osprey Bitcoin Trust through their brokerage accounts.
JPMorgan Wealth Management Services and Crypto
While traditional banks, especially JPMorgan, have been critical of crypto in the past, they are finding the next big opportunity in the same space. Back in 2017, JPMorgan boss Jamie Dimon called Bitcoin a ‘fraud’. However, this change in the bank’s attitude isn’t surprising looking at the growing institutional demand. Speaking to Forbes, Greg King, founder and CEO of Osprey Funds, said:
“We are excited to be onboarded to the JPMorgan wealth platform. OBTC remains the lowest-priced publicly traded bitcoin fund in the US and we believe JPMorgan’s clients will see value in the product”.
As said earlier, the good thing is that retail clients will get exposure to regulated crypto instruments. This includes those using JPMorgan’s commission-free Chase trading app. However, the trust products mentioned above come with custody headaches. Thus, clients cannot invest in these crypto funds directly through their JPM accounts.
JPMorgan clients can take buy and sell orders starting this week. However, advisors can only execute orders on clients’ demand, they cannot make any recommendations. The new policy, effective July 9, shall apply to all classes of clients.
BNY Mellon to Offer Crypto Trading
In another development, America’s oldest bank BNY Mellon will offer trading and custodial solutions to its clients. The Wall Street giant will back London-based crypto trading platform Pure Digital. Speaking to Financial Times, Pure Digital CEO Lauren Kiley said:
“We have spoken to all the top-tier banks but we think custody banks were some of the first to see demand, so they are now more advanced.”
The development shows that more and more banks are willing to offer crypto services to their clients. As the regulatory landscape evolves, BNY Mellon is also willing to offer “new digital asset servicing solutions”.
“Digital assets are only going to become more embedded in global markets in the years ahead, and this collaboration accords with BNY Mellon’s wider strategy to develop a digital asset capability for clients across the entire trade life cycle,” Jason Vitale, global head of foreign exchange at BNY Mellon said.