Key Takeaways
- JPMorgan now permits clients to invest in Bitcoin ETFs, joining other major U.S. investment banks.
- CEO Jamie Dimon maintains skepticism, stating the bank won’t custody Bitcoin or actively promote it.
- Goldman Sachs leads with $418 million in BlackRock’s iShares Bitcoin Trust, while JPMorgan’s holdings remain modest.
JPMorgan’s Policy Shift on Bitcoin ETFs
In a significant policy update, JPMorgan Chase announced it will allow brokerage clients to invest in spot Bitcoin ETFs, ending its status as the last major U.S. bank to restrict Bitcoin exposure.
CEO Jamie Dimon confirmed the decision during the firm’s May 19 investor day, emphasizing client choice while reiterating his skepticism:
"We are going to allow you to buy Bitcoin. I defend your right to buy it, but we won’t custody or promote it."
👉 Discover how major banks are adapting to Bitcoin ETFs
Jamie Dimon’s Bitcoin Skepticism
Despite the policy change, Dimon’s personal views remain unchanged. He likened Bitcoin investing to smoking—a choice he wouldn’t recommend but supports as a client option. Key points:
- No custody services: JPMorgan won’t hold Bitcoin directly.
- Transparent reporting: Client holdings will appear on statements.
Wall Street’s Embrace of Bitcoin ETFs
JPMorgan’s move aligns with broader industry trends. Major competitors—including Goldman Sachs, Morgan Stanley, and Bank of America—already offer Bitcoin ETF access.
Goldman Sachs Leads in Holdings
- $418 million investment in BlackRock’s iShares Bitcoin Trust (Q2 2024).
- Largest institutional holder of the ETF.
JPMorgan’s Cautious Approach
- $1 million allocated to Bitcoin and Ether ETFs (per SEC filings).
- Likely for high-net-worth clients under tailored agreements.
👉 Learn why Bitcoin ETFs are reshaping institutional investments
The Bigger Picture: Bitcoin ETFs and Banking
Since the SEC approved spot Bitcoin ETFs in January 2024, banks have increasingly integrated them as regulated investment vehicles. This shift reflects:
- Client demand for diversified crypto exposure.
- Regulatory clarity reducing institutional hesitation.
FAQ: Bitcoin ETFs and Banking
Q: Why did JPMorgan reverse its Bitcoin ETF policy?
A: Rising client demand and competitive pressure from rival banks drove the decision.
Q: Does Jamie Dimon support Bitcoin?
A: No. He permits access but remains skeptical, comparing it to smoking.
Q: Which bank holds the most Bitcoin ETF shares?
A: Goldman Sachs, with $418 million in BlackRock’s iShares Bitcoin Trust.
Q: Are Bitcoin ETFs safe for traditional investors?
A: While volatile, ETFs offer regulated exposure compared to direct crypto ownership.
Final Thoughts
JPMorgan’s policy update underscores Wall Street’s gradual acceptance of Bitcoin ETFs, despite leadership skepticism. As institutional adoption grows, these products are becoming a staple in diversified portfolios.
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