What happened?
Despite the CEO's long-standing critical stance on Bitcoin, JPMorgan has decided to allow customers to engage with Bitcoin through means such as Bitcoin spot ETFs, but the bank itself will not directly custody these digital assets, indicating a strategic adjustment to meet market demand while maintaining distance from direct asset custody.
Dimon personally still firmly believes that Bitcoin is 'useless,' even calling it a 'pet rock,' and repeatedly emphasizes its potential use in illegal activities such as money laundering and terrorism. His stance starkly contrasts with the bank's policy of opening Bitcoin services, highlighting the complex views within traditional finance regarding digital assets.
JPMorgan's actions align with trends among other large financial institutions like Morgan Stanley, reflecting that Bitcoin and related products (such as spot ETFs) are being increasingly accepted by traditional investors. At the same time, U.S. regulatory agencies have shown signs of relaxing their guidance on cryptocurrencies, creating a more open environment for the development of digital assets within the financial system.
JPMorgan opens up for customers to purchase Bitcoin, CEO Dimon remains skeptical.
As digital currencies increasingly integrate into the global financial landscape, even leaders of traditional financial giants cannot ignore their influence. Jamie Dimon, CEO of JPMorgan Chase, who has long held a skeptical view of Bitcoin, recently announced that the bank would allow customers to purchase Bitcoin, marking a strategic shift for JPMorgan in the field of crypto assets and revealing the growing acceptance of Bitcoin in mainstream investment circles.
Dimon clearly stated at JPMorgan's annual Investor Day on the 19th: 'We will allow you to buy Bitcoin, but we will not custody it.'
According to foreign media (CNBC), JPMorgan is considering allowing customers to invest in Bitcoin through purchasing Bitcoin spot ETFs, but the bank itself will not directly 'custody' these Bitcoins for users.
In other words, they have opened up to Bitcoin in business, but still maintain a certain distance from the physical custody of Bitcoin, allowing customers to engage more with the Bitcoin 'spot' market than in the past when they only offered futures products.
Dimon's firm skepticism and his reasons
Despite changes in bank policy, Dimon's personal view on Bitcoin remains unwavering.
He reiterated his concerns about Bitcoin being used for illegal activities such as money laundering, sex trafficking, and terrorism, and used his famous analogy to illustrate his position: 'I don’t think you should smoke, but I defend your right to smoke. I also defend your right to buy Bitcoin.' He has repeatedly emphasized that the 'only real use of Bitcoin is for criminals, drug dealers, money launderers, and tax evaders.'
Dimon's criticism of Bitcoin is notorious. As early as the 2021 cryptocurrency bull market, he declared that Bitcoin was 'worthless.' During a Senate hearing in 2023, he admitted, 'I have always been strongly opposed to cryptocurrencies, such as Bitcoin,' and even stated, 'If I were the government, I would shut it down.'
At the World Economic Forum in Davos in 2024, Dimon again shocked many by calling Bitcoin 'useless' and likening it to an 'electronic pet rock,' stating that this would be his last time publicly discussing Bitcoin.
'Pet rock' was a novelty toy that became popular in the United States during the 1970s. It was just an ordinary rock sold as a 'pet.'
The humor and success of this concept lie in the fact that people spend money on a completely useless rock that doesn’t require feeding or caring for, pretending it is a pet. It does 'nothing' on its own, and its value comes entirely from the concept and marketing that people assign to it.
Thus, Dimon compares Bitcoin to a 'pet rock,' implying that Bitcoin is essentially useless, lacks intrinsic value, and cannot generate any actual benefits; its value exists only because people assign value to it or because it has been hyped. Overall, he believes that the value of Bitcoin is illusory and absurd.
Mainstream banks follow market trends
JPMorgan is not the only large financial institution taking such actions. Its main competitor, Morgan Stanley, has also allowed its financial advisors to recommend certain Bitcoin spot ETFs to eligible clients since last August.
In fact, the Bitcoin spot ETF in the United States has shown strong market demand since its launch in January 2024, attracting nearly $42 billion in inflows.
Under President Trump, the regulatory environment related to cryptocurrencies also experienced subtle changes. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have rescinded some of their anti-cryptocurrency guidance, and the Federal Reserve has also partially followed suit.
Despite the repeal of accounting standard SAB 121, which now allows banks to custody cryptocurrencies, banks still face certain restrictions when it comes to directly collaborating with digital asset companies.
JPMorgan's decision, although Dimon’s personal opposition remains quite firm, highlights that Bitcoin, as an asset class, is increasingly integrating into the traditional financial system and gradually being accepted by more investors.
References: cointelegraph, cnbc
