Daniel Pinto, co-chairman of JPMorgan Chase, the major US investment bank, believes the bank will one day have to make a positive move regarding Bitcoin (BTC).
If the demand increases, the Bitcoin move can come at any time
The manager told CNBC on Friday that JPMorgan’s decision to offer Bitcoin services will depend on customers’ demand. While current demand isn’t strong enough, Pinto is confident it can grow even bigger:
“If over time an asset class develops to be used by different asset managers and investors, we will have to get involved. The demand is still sufficient, but I’m sure it will come to that level one day. ”
Pinto’s recent quotes follow bullish signals shared by JPMorgan for a while. During the Zoom meeting in January, JPMorgan’s head of global markets Troy Rohrbaugh acknowledged that the bank’s own employees were increasingly asking about the bank’s Bitcoin plans. Pinto was already saying he was open minded about BTC.
JPMorgan CEO used to be against cryptocurrencies
JPMorgan’s potential transition to Bitcoin seems somewhat ironic, given the company’s CEO Jamie Dimon is known for his negative stance on Bitcoin. In September 2017, Dimon compared the world’s largest cryptocurrency to the “tulip frenzy”, predicting a massive collapse and calling it a “scam.” At the time, Bitcoin was trading around $ 3,500. Three months later, the digital currency reached $ 20,000, but soon entered a large bear market.
Bitcoin surpassed JPMorgan in terms of market capitalization with $ 352 billion in November 2020. The date the turning point came; It coincided with Dimon comparing Bitcoin to proprietary blockchain networks with regulatory controls.
JPMorgan strategists have given mixed signals about Bitcoin in the past. In October 2020, it was reported that JPMorgan suggested that the price of Bitcoin will double or triple in the long run. A few months later, JPMorgan strategists John Normand and Federico Manicardi argued that Bitcoin was the least reliable asset in times of hectic market stress.