The plot continues to thicken when it comes to JPMorgan Chase and Bitcoin. After its CEO denounced Bitcoin as a fraud, customers started buying Bitcoin in large quantities. It now appears the financial institution will actually offer Bitcoin futures trading in the very near future. That in itself is intriguing, although nothing has been set in stone just yet. It will be interesting to see how Jamie Dimon responds to all of this.
Over the past few years, we have witnessed a growing demand from institutional investors for Bitcoin and cryptocurrency. More specifically, these investors would love to be exposed to Bitcoin price volatility without having to go through the process of buying BTC first and foremost. Futures markets are growing in popularity all over the world as we speak. In most cases, banks do not get involved in this particular space, but that may come to change in the near future.
More specifically, JPMorgan Chase – of all financial institutions – is currently contemplating providing investors with Bitcoin futures trading services. Assuming the company decides to go ahead with the idea, its futures-brokerage unit will give customers access to CME Group’s proposed futures contracts. It is a pretty intriguing development, as the CME Bitcoin futures are considered to be the proverbial floodgates for institutional money entering the world of cryptocurrency.
Although a decision on the matter has not been made, the fact that it is being even remotely considered paints an interesting picture. Most people will recall how JPMorgan CEO Jamie Dimon called Bitcoin a fraud a few weeks ago. Ever since that time, we have seen the Bitcoin price set multiple new all-time highs in quick succession. While cryptocurrency may be a bubble for all we know, it is not about to burst anytime soon. That will heavily depend on whether or not there is any major risk associated with Tether right now, which remains a big question.
As for JPMorgan potentially offering Bitcoin futures, that depends on whether or not CME gets regulatory approval to launch its Bitcoin futures product. Right now, that seems highly likely, although things always work out a bit unexpectedly when it comes to cryptocurrency-related products. Assuming CME gets the green light, the new product should come to market before the year is over, although no official date or timeline has been communicated at this point.
Seeing JPMorgan do a complete 180 regarding Bitcoin and cryptocurrency is rather significant. Although it remains to be seen if the company will actually go ahead with this futures offering in the coming weeks, the concept is actively being considered. It is doubtful that Jamie Dimon will be all too pleased with this development, although he must be involved in the decision-making process somehow. Things are certainly evolving in a very different direction from what most of us had expected a few months ago.
The big question is whether or not other banks and financial institutions will jump on the Bitcoin futures bandwagon as well. It would be in their best interest not to ignore cryptocurrency any longer, yet they can’t openly endorse it either. Providing access to futures trading would be an interesting intermediary solution, as it also would help gauge the general interest in Bitcoin from a consumer point of view. How all of this will affect the Bitcoin price across the exchanges remains to be seen, though.
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