JPMorgan Chase really appears to hate Bitcoin and crypto, as long as you ignore the millions of dollars they are throwing at the sector.
For years, the investment bank has pursued investments in blockchain and cryptocurrency while simultaneously talking the industry down. That trend was continued recently by JPMorgan president Daniel Pinto, who on Monday told CNBC that crypto is a small asset class that “is kind of irrelevant in the scheme of things.”
Dear JPMorgan, You Seem Confused Over Crypto
JPMorgan Chase may be the largest of the big four investment banks, but on the subject of crypto it seems confused on whether it is coming or going.
In a recent interview with CNBC, company president Daniel Pinto played down the influence of crypto in international markets.
“The reality is, the current form of crypto has become a small asset class that is kind of irrelevant in the scheme of things,” said Pinto. Even so, the executive did go on to concede that something may be brewing in the wider sector when he added, “… the technology, the concepts, something is probably going to happen there – just not in its current form.”
The seeming disinterest from JPMorgan would appear to be a step-up in some regards.
In 2021 company CEO Jamie Dimon asserted that “I personally think that Bitcoin is worthless.”
Prior to this, Dimon called Bitcoin “a fraud,” and “fools gold,” while calling cryptocurrencies “decentralized Ponzi schemes.”
Following the JPMorgan Crypto Trail
While JPMorgan executives have been having fun bashing all the blockchains, the company has been pursuing policies that contradict their edicts.
In 2019, the company launched its very own cryptocurrency (or should that be decentralized Ponzi scheme?) in the form of JPM Coin.
In 2020, the bank created an entire blockchain division called Onyx, which according to them “pioneered the world’s first bank-led blockchain platform for the exchange of value, information and digital assets.”
The company also has a string of blockchain and crypto investments to its name.
This year alone, the bank participated in a $60 million funding round for the on-chain analysis firm Elliptic, and a $32 million funding round with competitor organization TRM Labs.
In 2021, the deals were significantly bigger. In Jan. 2021 JPMorgan directly invested $100 million in Figure, a company leveraging blockchain technology in the mortgage market. Other investments included ConsenSys, the company behind MetaMask. In that instance, JPMorgan participated in a funding round with UBS and Mastercard, raising a combined $65 million.
What Does It All Mean?
While JPMorgan’s total investment in blockchain is difficult to measure, the company has publicly stated that it spends $12 billion per year on technology projects. That includes machine learning or artificial intelligence as blockchain.
Why, then, all the hate from the men at the top? That’s hard to say with any confidence, but when words and actions misalign, it’s probably better to judge them by their actions. Even haters want those sweet crypto gains.
Top crypto platforms | March 2024
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FAQs
JPMorgan continues to advise exercising caution in the crypto markets in the near future due to several factors, including a lack of positive indicators and declining retail investor interest.
Does JPMorgan invest in Bitcoin? ›
The SEC filing by JPMorgan Chase provides specific insights into the bank's exposure to spot Bitcoin ETFs. The bank currently has exposure to spot Bitcoin ETFs issued by some of the largest asset managers in the world: BlackRock, Fidelity, Grayscale, and more.
Does Web3 include Bitcoin? ›
With Bitcoin technology upgrades and new innovations like L2s and Ordinals, Bitcoin has entered the web3 conversation. Bitcoin Web3 enables DeFi, NFTs, DAOs, and other decentralized infrastructure built on top of the Bitcoin blockchain.
Is there a crypto better than Bitcoin? ›
In fact, Ethereum may overtake Bitcoin, according to Yahoo Finance, which cites the platform's custom contracts as a more versatile alternative to Bitcoin.
Is JPMorgan crypto friendly? ›
JPMorgan used blockchain technology in February 2021 and launched JPM Coin to streamline international payments. Furthermore, JPMorgan introduced a Bitcoin fund in August 2021 that is open to all of its wealth management clients.
What does Warren Buffett think of Bitcoin? ›
Perhaps the most famous value investor of all time, Warren Buffett is strongly against Bitcoin and other cryptocurrencies, saying, "You can't value Bitcoin because it's not a value-producing asset." Buffett and his holding company Berkshire Hathaway Inc. have been well-known for their investments in stable and ...
Does it make sense to invest in bitcoin now? ›
Bitcoin is more stable than it's been in years, and the next halving is fast approaching. Taking current market conditions into account, now might well be the perfect time to invest, so long as you remain cognizant of the risks.
How much bitcoin does BlackRock own? ›
How Much Bitcoin Does BlackRock Own? The Blackrock's iShares Bitcoin Trust (IBIT) currently holds 342,659.0 BTC as of July 30, 2024.
Can Web3 work without crypto? ›
No, it might NOT exist without Web3' s blockchain technology or other decentralized technologies. Web3 can exist without blockchain technology, but it would be a very different web. Blockchain is one of the key technologies that enable Web3, but it is not the only one.
What is Web3 in simple terms? ›
Web3 is a term used to describe the next iteration of the internet, one that is built on blockchain technology and is communally controlled by its users. 3D illustration of a human hand and a digital hand reaching through geometric portals and touching finger tips at the center of the frame. (5 pages)
You cannot invest directly in Web 3.0, but you can choose to be an active or passive investor through a variety of investment options. Active investment options include cryptocurrency and NFTs, while passive investment options involve buying stocks in companies actively engaged in Web 3.0.
Which coin will reach $1 in 2024? ›
Conclusion. In the dynamic landscape of cryptocurrency, these ten coins, including TRON, Shiba Inu, Astar, Kaspa, Dogecoin, Stellar, Kava, Polygon, Cronos, and VeChain, present diverse potentials for reaching the $1 milestone in 2024. Investors keen on penny cryptos have a spectrum of options to explore.
Which crypto will outperform Bitcoin? ›
Synopsis. Bitcoin retained its status as the leading cryptocurrency, yet altcoins like The Meme Games, Pepe Unchained, Base Dawgz, PlayDoge, and XRP are showing signs of strong performance for 2024.
Why use Bitcoin instead of cash? ›
If used correctly, Bitcoin can be used as an anonymous currency free from spying governments. When you use Bitcoin, you don't need to provide your email, name, social security number, or any other identifying information. Bitcoin is just numbers, 1's and 0's, traveling through the internet.
Is Chase bank crypto friendly? ›
No, we block any payment we identify as a crypto asset transaction. If you try to make a bank transfer or card payment to a crypto exchange, we'll decline it and no money will leave your account.
What does Jamie Dimon think of cryptocurrency? ›
“I will personally never buy Bitcoin, and I do think it's a risk if you are a buyer. When governments look at all this stuff, why do they put up with it?”
What is the SEC stance on crypto? ›
Securities and Exchange Commission (SEC): The SEC oversees the issuance and sale of securities, including digital assets that meet the definition of securities. This means cryptocurrencies that are considered securities must be registered with the SEC and comply with its regulations.
Can you invest in crypto with Chase? ›
The only reliable way to buy Bitcoin or cryptocurrencies with Chase Quickpay is through a peer-to-peer exchange like Paxful or Local Bitcoins. This will link you up with a direct seller who will connect with you to setup the Bitcoin transfer.
