At JPMorgan’s annual investor day on 19 May, chief executive Jamie Dimon announced a policy shift that will let customers buy Bitcoin via regulated exchange-traded funds.
“We are going to allow you to buy it,” he said.
“We’re not going to custody it. We’re going to put it in statements for clients.”
The bank will route orders to spot ETFs rather than hold coins directly, limiting operational risk while satisfying demand.
U-Turn From Years of Skepticism
Dimon’s remarks contrast sharply with his 2021 description of Bitcoin as “worthless” and his 2023 plea to U.S. lawmakers to “close it down.”
He conceded he remains wary of illicit-finance risks tied to crypto assets.
Still, he framed the move as consistent with JPMorgan’s duty to offer popular products.
“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” Dimon quipped.
Competitive Pressures Mount
Rival Morgan Stanley began offering spot Bitcoin ETF access last August and has since captured a significant share of wealthy U.S. investors allocating to crypto.
As of mid-May, spot Bitcoin ETFs have drawn roughly $42 billion in net inflows, giving traditional brokers a growing incentive to participate.
Allowing ETF trades lets JPMorgan retain clients who might otherwise migrate to specialised crypto platforms.
Balanced Approach to Risk
By confining exposure to exchange-traded vehicles, JPMorgan avoids hot-wallet security threats and complex anti-money-laundering protocols.
The arrangement also helps the bank meet capital rules because it need not book Bitcoin on its own balance sheet.
Analysts say the strategy mirrors how large brokers handled gold ETFs following that market’s 2004 liberalisation.
Potential Market Impact
JPMorgan oversees more than $3 trillion in client assets, so even modest percentage allocations could boost ETF liquidity.
Broader participation from mainstream banks may also reduce volatility by extending holding times and spreading ownership among long-term investors.
Next Steps and Regulatory Backdrop
The bank did not provide a launch date but hinted that integration work with ETF providers is “well advanced.”
The policy change arrives as U.S. regulators increase scrutiny of direct-custody crypto offerings, making ETF routes comparatively attractive.
Industry observers expect other large lenders to follow suit before year-end.