JP Morgan Potentially Getting Involved with Bitcoin Futures. The CEO of JP Morgan has indicated that he is of the belief that likes of bitcoin are a bit of a “fraud” but he does not rule out his company from having the opportunity to earn nice levels of profit through the process of aiding their clients to trade bitcoin futures.
This is a feeling that has been widespread throughout Wall Street, with many leading economists and CEOs saying that they believe that bitcoin is a bubble and that their prices are overinflated. However, these people have been saying the same thing for a number of years now, with the prices continually rising.
It appears that a lot of people on Wall Street do not have a proper grasp when it comes to the likes of cryptocurrencies and blockchain. Not everyone is of the same opinion at least.
It was reported that JP Morgan has been in talks about facilitating client trades when it comes to bitcoin futures contracts as soon as they have been launched in December on the U.S derivatives exchange CME.
It has been under consideration and most indicators point towards them opening themselves up to this process. At the moment, when it comes to futures commission merchants, JP Morgan is the second largest when it comes to American firms.
If they decide to cater for this gateway into the bitcoin futures provided by CME, this would mean that many investors would then have the ability to long or short the bitcoin price without having to hold any of the digital currency themselves, eliminating a large hurdle for them in the process, making it a lot more streamlined when it comes to the transaction.
It does not come as a surprise that a firm on Wall Street will be happy to cater for bitcoin futures. A lot of leading financiers are of the belief that once this futures market by CME is introduced, bitcoin will be greatly tamed and bundled into being a more mainstream financial instrument.
Jamie Dimon, CEO of JP Morgan has probably been the most vocal Wall Street CEO when it comes to CEOs in his criticism of bitcoin. It was only in September that he claimed that bitcoin as a “fraud” and threats were made that any of his employees who were caught trading would potentially be fired.
He then proceeded to say that he would no longer be talking about bitcoin in October, but this vow only lasted a single day as he went on to hurl further insults at “stupid” bitcoin investors – a group which included his own daughter.
If JP Morgan decides to go ahead with catering for clients trading futures contracts on bitcoin, this may seem a bit hypocritical, but of course, Wall Street firms are ultimately most concerned with their bottom line. The failure to offer this service could lead to them losing a large portion of their market share as clients may decide to transfer their money to other firms in order to access these bitcoin futures.
This is certainly going to be an exciting space to watch in the coming weeks and months.
