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JPMorgan Chase agreed to play a vital role in BlackRock’s spot bitcoin (BTC) exchange-traded fund (ETF) despite CEO Jamie Dimon’s vocal anti-crypto stance.
JPMorgan Chase CEO Jamie Dimon has never been one to keep his disapproval of bitcoin and cryptocurrencies a secret. Despite the CEO’s opposition to digital assets, JPMorgan agreed to play a crucial role in BlackRock’s spot BTC ETF application.
Jamie Dimon Would Abolish Crypto If He Could
Just weeks ago, Jamie Dimon told the US government to shut down the industry. At the December 6 hearing of the State Senate Banking Committee on oversight of Wall Street firms, Dimon said, “I’ve always been deeply opposed to crypto, bitcoin, etc.” According to the billionaire CEO, “The only true case for it is criminals,” and opined “, If I was the government, I’d close it down.”
Dimon has made numerous statements dismissing bitcoin, urging people to “stay away” from cryptocurrencies, calling it a “fraud” in 2017. More recently, Dimon referred to crypto as “decentralised Ponzi schemes” and suggested regulators shift their focus away from traditional banks to the crypto industry.
While Dimon continues to bash bitcoin, JPMorgan is investing more interest in the original crypto. On Friday, December 29, it was revealed that JPMorgan will play a significant role in BlackRock’s proposed BTC ETF. BlackRock amended its ETF application with the SEC naming JPMorgan as one of its “authorized participants.”
On its website, BlackRock explains that if it receives approval for its ETF, JPMorgan will play a “central role”, including “ensuring that ETF prices are accurate, and that trading is smooth, in all market conditions.”
Opinion - Hypocritical Much?
Dimon’s indirect involvement in crypto assets is confusing at best. While lobbying for a bitcoin ban, JPMorgan has been appointed in a massively important capacity as one of BlackRock’s capital market facilitators. Could we dare call this precarious situation somewhat hypocritical?
Prominent pro-crypto lawyer John Deaton pointed out this hypocrisy in a comment made on an X post by Bloomberg’s ETF analyst Eric Balchunas.
Balchunas posted on X soon after BlackRock updated its S-1 filing with the SEC, highlighting the irony of JPMorgan’s role.
Deaton was quick to call out JPMorgan’s involvement:
“How about that @ewarren, Jamie Dimon’s @jpmorgan is involved with #Bitcoin despite its only use case serving terrorists, drug cartels and other criminals. Or maybe you and Jamie Dimon are simply gas lighting the American public.”
Adding to the confusion, JPMorgan recently launched its crypto token, JPM Coin, on a version of Ethereum for its institutional clients despite the bank being “deeply opposed” to the digital asset industry.
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