JP Morgan is considering getting a stake in Bitcoin, but claims that there is insufficient demand to keep the company moving
The US multinational investment bank is optimistic that it will jump into the first crypto if customer demand increases. According to the bank’s co-president and COO Daniel Pinto, the bank’s need for crypto assets is currently far from being sufficient. However, he believes that the appetite for Bitcoin will increase in the coming days and will eventually suffice.
Speaking about CNBC, Pinto revealed that JP Morgan would likely join the Bitcoin train at that point. He stated that the huge US banking institution had to plan at this point. The past 10 months have been critical to the crypto sector, which has flourished and outperformed most traditional assets. It’s no surprise that several high profile individuals and prestigious institutions have poured their money into crypto assets.
Bitcoin in particular has piqued the interest of many people as well as large companies. But even with Tesla, Square, and MicroStrategy providing funding for crypto, the majority of banks have largely stayed away from the crypto path. Financial institutions are a missing key to prove the legitimacy of cryptocurrencies.
By introducing Bitcoin, they are making a significant contribution to the global adoption of the asset. Less than two weeks ago, Goldman Sachs and Galaxy Digital executives had a private session discussing bitcoin and other crypto assets. JP Morgan could catch up and enter the sector if it continues to perform well.
The bank’s COO stated: “If over time an asset class develops that will be used by various asset managers and investors, we need to be involved. The demand is not there yet, but I am sure that it will eventually be. “
While Pinto’s remarks aren’t an endorsement or anything close to an official announcement, they are good news for the crypto sector. JP Morgan’s top executives previously shook off Bitcoin. For example, in 2017, the bank’s CEO labeled the cryptocurrency a “scam” and said, “It’s worse than tulip bulbs. It won’t end well.” Although he later apologized, JP Morgan and Bitcoin’s relationship is a love one and one Hate relationship remained.