What Happened?
Despite the long-standing critical stance of its CEO towards Bitcoin, JPMorgan Chase has decided to allow clients to access Bitcoin through means such as Bitcoin spot ETFs. However, the bank will not directly custody these digital assets, indicating a strategic adjustment to meet market demand while maintaining a distance from direct asset custody.
Jamie Dimon firmly believes that Bitcoin is “useless,” even referring to it as a “pet rock,” and has repeatedly emphasized 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 major financial institutions like Morgan Stanley, reflecting an increasing acceptance of Bitcoin and its related products (such as spot ETFs) among traditional investors. Additionally, there are signs of a loosening of guidance from U.S. regulatory bodies regarding cryptocurrencies, creating a more open environment for the development of digital assets within the financial system.
JPMorgan Opens Bitcoin Purchases to Clients, CEO Dimon Remains Skeptical
As digital currencies increasingly integrate into the global financial landscape, even leaders of traditional financial giants find it difficult to ignore their influence. Jamie Dimon, the long-time skeptic of Bitcoin and CEO of JPMorgan Chase, recently announced that the bank will allow clients to purchase Bitcoin. This decision marks a strategic shift for JPMorgan in the realm of crypto assets and reveals the growing acceptance of Bitcoin in mainstream investment circles.
During JPMorgan’s annual Investor Day on the 19th, Dimon explicitly stated, “We will allow you to buy Bitcoin, but we will not custody it.” According to a report by CNBC, JPMorgan is considering enabling clients to invest in Bitcoin through purchasing Bitcoin spot ETFs, though the bank itself will not directly “custody” these Bitcoins for users.
This means that while they are opening up to Bitcoin in business terms, they are still keeping a certain distance from the custody of physical Bitcoins, providing clients with access to the “spot” market for Bitcoin, which is a step beyond merely offering futures products.
Dimon’s Firm Skepticism and Its Justifications
Although the bank’s policy has changed, Dimon’s personal views on Bitcoin remain unshaken. He reiterated his concerns about Bitcoin being used for illegal activities such as money laundering, human trafficking, and terrorism, using his famous metaphor to explain 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 emphasized multiple times that the “only real use for Bitcoin is for criminals, drug dealers, money launderers, and tax evaders.”
Dimon’s criticisms of Bitcoin are notoriously well-known. As early as the cryptocurrency bull market in 2021, he asserted that Bitcoin was “worthless.” During a Senate hearing in 2023, he candidly stated, “I have always been strongly opposed to cryptocurrencies, including Bitcoin,” and even remarked, “If I were the government, I would close it down.”
At the World Economic Forum in Davos in 2024, Dimon again made headlines by stating that Bitcoin is “useless,” likening it to an “electronic pet rock” and declaring that this would be his last public comment on Bitcoin. The “pet rock” was a novelty toy that became popular in the United States during the 1970s. It is essentially just a regular stone sold as a “pet.”
The humor and success of the concept lie in the fact that people spend money to buy a completely useless rock that requires no feeding or care, pretending it is a pet. It does nothing by itself; its value comes entirely from the concept and marketing people assign to it. Therefore, by comparing Bitcoin to a “pet rock,” Dimon implies that Bitcoin is essentially worthless, without intrinsic value, and cannot yield any practical benefits. Its value exists solely because people attribute value to it or because it has been hyped up. Overall, he views the value of Bitcoin as illusory and absurd.
Mainstream Banks Follow Suit with 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 August of last year. In fact, Bitcoin spot ETFs in the United States have demonstrated strong market demand since their launch in January 2024, attracting nearly $42 billion in inflows.
Under President Trump’s administration, there have been subtle changes in the regulatory environment. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have rescinded some of their anti-cryptocurrency guidance, with the Federal Reserve partially following suit. Although the repeal of accounting standard SAB 121 allows banks to custody cryptocurrencies now, banks still face certain limitations in directly collaborating with digital asset companies.
JPMorgan’s decision, despite Dimon’s firm opposing stance, highlights that Bitcoin, as an asset class, is increasingly integrating into the traditional financial system and gradually being accepted by more investors.
Reference: Cointelegraph, CNBC