The largest US investment bank, JPMorgan Chase, will eventually have to get involved in Bitcoin (BTC), says Vice President Daniel Pinto.
The executive director said on Friday that JPMorgan’s decision to introduce crypto services will depend on customer demand to trade them. While the current demand is not strong enough, Pinto believes it could continue to rise:
If an asset class develops over time that will be used by different asset managers and investors, we will need to be involved […] Demand is not there yet, but I am sure there will be some.
Pinto’s recent comments follow some bullish signals that have been circulating around JPMorgan for quite some time. During an internal Zoom conversation in January, JPMorgan’s global CEO Troy Rohrbaugh reportedly admitted that bank employees are increasingly asking about the bank’s Bitcoin plans. People familiar with this issue have previously admitted that Pinto is rather open to cryptocurrencies.
Bitcoin vs Tulipomania
JPMorgan’s possible entry into Bitcoin seems a bit ironic. Especially considering that the company’s CEO Jamie Dimon is known for his negative stance on the flagship cryptocurrency. In September 2017, Dimon called Bitcoin a “fraud”, comparing the world’s largest cryptocurrency to “Tulipomania.” Moreover, he predicted a “huge collapse.” At that time, Bitcoin cost around $ 3,500. Three months later, the digital currency hit $ 20,000 – though it entered a long-standing bear market shortly after.
Bitcoin overtook JPMorgan in market capitalization at $ 352 billion in November 2020. This milestone came shortly after Dimon compared Bitcoin to proprietary, regulated blockchains, stating that “Bitcoin is a little different, and it’s not my cup of tea.”
JPMorgan’s strategists have provided mixed signals about Bitcoin in the past. In October 2020, JPMorgan suggested that the price of Bitcoin would double or triple in the long run. A few months later, JPMorgan strategists John Normand and Federico Manicardi argued that Bitcoin was the least reliable security measure in times of acute market crisis.