JPMorgan's Bitcoin ETF Involvement Sparks Controversy amidst CEO's Crypto Skepticism
Summary:
News of BlackRock identifying JPMorgan as an 'authorized participant' has caused a stir in the cryptocurrency community. Critics have pointed out the contradiction of JPMorgan's engagement with Bitcoin ETFs, given CEO Jamie Dimon's past comments suggesting that the company might aim to shut down cryptocurrencies due to their facilitation of illegal activities. In spite of JPMorgan's stated opposition to digital assets, the bank has launched its own coin for institutional clients and also rolled out a tokenization platform with BlackRock as one of its clients.
BlackRock has identified JPMorgan, headed by CEO Jamie Dimon, as an 'authorized participant', which has caused quite a stir on social media platform X (previously Twitter). This news has been revealed in BlackRock's recent S-1 amendments. Eric Balchunas, an ETF analyst at Bloomberg, mentioned in his analysis of the updated S-1 that Jane Street and JPMorgan have been named as APs, considering the selection of the investment bank as ironic. BlackRock's revised form has listed Jane Street and JPMorgan Securities as 'authorized participants' on its prospective Bitcoin ETF application. Jamie Dimon, CEO of JPMorgan, however, has not always publically supported Bitcoin (BTC).
Dimon commented in a Senate Banking Committee hearing on December 6, focused on scrutinizing Wall Street companies, that should he have government authority, he would aim to close down cryptocurrencies. He maintained that the primary function of Bitcoin and cryptocurrencies was to facilitate illegal activities. Crypto enthusiasts were quick to point out the contradictory position of JPMorgan's role in BlackRock's Bitcoin ETF.
Crypto fans, using the X platform, have critiqued JP Morgan for their participation in BlackRock's Bitcoin ETF, with one user, @silzimzil, suggesting that the firm might also be involved in illegal activities such as money laundering and tax evasion. Another user @sunny051488, questioned JPMorgan's recent actions, given their previous statements to Congress and Senator Elizabeth Warren.
In relation to this, John Deaton, a lawyer specializing in XRP, noted Senator Elizabeth Warren's viewpoints on Bitcoin, pinpointing that despite the criminal connotations, JPMorgan, under Jamie Dimon's leadership, was still engaging with Bitcoin. Deaton proposes that this might be an attempt to either mislead the populace or engage in gaslighting.
In spite of their vehement opposition to digital assets, JPMorgan has recently introduced its own cryptocurrency — JPM Coin — exclusively for its institutional clients, on a private version of the Ethereum blockchain.
They also launched a tokenization platform based on blockchain technology in October, with BlackRock as one of its customers. In addition to this, JPMorgan was part of a group contributing to a $65 million fundraising endeavor for Ethereum firm Consensys in April 2021.
Published At
12/30/2023 10:46:10 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.