United States Co-President Daniel Pinto believes that major US investment bank JPMorgan Chase should eventually get into bitcoin (BTC).
The CEO told CNBC on Friday that JPMorgan’s decision to implement bitcoin services would be driven by customer demand to trade bitcoin. Although the current demand is not high enough, Pinto is confident that it can continue to grow:
“If the asset class evolves over time that will be used by many asset managers and investors, then we have to participate […] There is no demand yet, but I am sure there will be a point.”
Pinto’s recent comments come on the heels of some bullish signals that have been trading around JPMorgan for some time. During an internal phone conversation with Zoom in January, JPMorgan, Global Marketing Director Troy Rohrbo, acknowledged that bank employees are increasingly asking about the bank’s Bitcoin plans. Pinto already said he has an open mind about Bitcoin, said people familiar with the matter.
JPMorgan’s potential move to Bitcoin looks a bit ridiculous, because the company CEO Jamie Dimon is known for his negative attitude towards Bitcoin. In September 2017, Daimon called Bitcoin a “scam”, comparing the world’s largest cryptocurrency to the “tulip mania” and predicting its collapse. At the time, Bitcoin was trading around $ 3,500. The digital currency reached the $ 20,000 mark three months later, although it entered a bear market for several years shortly thereafter.
Bitcoin surpassed JPMorgan by market cap of $ 352 billion in November 2020. The achievement came shortly after Daimon compared Bitcoin to the regulatory oversight blockchain networks, saying, “Bitcoin is another matter altogether, and this is not my cup of tea.”
In the past, JPMorgan strategists have given mixed signals about Bitcoin. In October 2020, JPMorgan predicted that the bitcoin price would double or triple in the long term. Months later, JP Morgan strategists John Normand and Federico Maniardi claimed that Bitcoin was the least reliable hedging tool in times of intense market stress.