JPMorgan allows customers to invest Bitcoin funds

JPMorgan Bitcoin Fund may launch as early as this summer. NYDIG will be the custodial provider of the fund. This is truly a big boom that could have a positive impact on the upcoming Bitcoin price.

Giant JPMorgan Chase is preparing to offer a regulated Bitcoin fund for certain clients, aspiring to become the newest, largest, and most powerful fund with the status of America’s largest bank. .

NYDIG will act as JPMorgan’s custody service provider. JPMorgan’s Bitcoin fund will be actively managed, delivering a remarkable breakthrough offered by leading crypto companies such as Pantera Capital and Galaxy Digital.

In addition, JP Morgan Chase allows customers with the ability to buy well and hold Bitcoin through funds without needing to manage them on their own. Galaxy and NYDIG currently provide Bitcoin funds to Morgan Stanley clients.

JPMorgan CEO Jamie Dimon, once called Bitcoin a dangerous scam in 2017, threatening to then fire any trader coming into contact with BTC.

However, things have changed now. With its achievements, Bitcoin probably conquered JP Morgan Chase. At the end of February, JPMorgan advised customers to invest in Bitcoin. Even just a month later, the blockbuster JPMorgan Chase series linked a series of “big men” that were planned.

However, the JPMorgan Chase Bitcoin fund is the result. This move comes just as Bitcoin has been successfully battling it out for the past week. Currently, Bitcoin’s price has responded relatively positively to this news. Perhaps, we understand part of the reason when JPMorgan has set a Bitcoin target of up to $ 130,000.

Analysts at JPMorgan commented on Bitcoin

Analysts at JPMorgan say that Bitcoin’s high volatility remains an issue for the digital asset.

They say Bitcoin is much more susceptible to depreciation than gold, while many crypto enthusiasts are hoping Bitcoin can replace the precious metal as a store of value in portfolios.

JPMorgan said in the note that Bitcoin’s three-month real volatility was 87 percent versus 16 percent for gold.

In the opinion of this bank, unless the volatility of Bitcoin declines rapidly, its current price level is unsustainable.

In addition, JPMorgan said that the limited supply of Bitcoin, which is based on the new amount of coins that the “miners” can produce, has led many investors to charge a premium when bringing in their Bitcoin to the market.

The bank added that cash flow from retail investors could also have boosted cash flows from institutional investors.

However, a JPMorgan analysis also shows that Bitcoin’s sharp and rapid rise in the past five months has occurred as the cash flow from the institutional investment pool is relatively small.

Analysts say the value of all Bitcoin in circulation has increased from $ 200 billion in September 2020 to $ 900 billion today.

It’s worth noting that while Bitcoin’s total market cap spiked by $ 700 billion, institutional investors poured only $ 11 billion into major trust funds and futures exchanges.

JPMorgan warned to maintain the current price, the cash flow from the institutional investment group will have to increase in the absence of cash flow from retail investment group can not re-accelerate.

Bitcoin’s latest rally is driven by signs that mainstream investors and companies are slowly adopting the digital currency, observers say.

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