JPMorgan Chase, Ukraine, Strategy boost Bitcoin

JPMorgan CEO Jamie Dimon stated that although his bank will not hold Bitcoin itself, it will soon allow its customers to purchase it.

At JPMorgan’s annual investor day on May 19, Dimon declared:

“We are going to allow you to buy it. We will not take custody of it. It will be included in client statements.”

Dimon also reiterated his long-standing mistrust of cryptocurrency assets, citing their use in terrorism, sex trafficking, and money laundering.

“I support your right to smoke, even though I don’t think you should. I support your right to purchase Bitcoin,” he added.

According to sources familiar with the matter, CNBC reported that JPMorgan will provide its clients with access to Bitcoin exchange-traded funds (ETFs).

Until now, the company’s exposure to cryptocurrency has been mostly restricted to futures-based products rather than direct ownership of digital assets.

Morgan Stanley, a rival of JPMorgan, has already taken steps to offer spot Bitcoin ETFs to eligible customers. Since their launch in January 2024, spot Bitcoin ETFs have seen substantial adoption in the U.S., with total inflows nearing $42 billion.

Dimon has long expressed skepticism about Bitcoin, calling it “worthless” during the 2021 cryptocurrency boom and describing it as a scam he had no interest in purchasing back in 2018.

“I’ve always had strong feelings against cryptocurrency, Bitcoin, etc.,” he said in 2023 during a Senate Banking Committee hearing. “Criminals, drug traffickers, money laundering, and tax evasion are the only real use cases for it.”

Strategy, the business intelligence software company founded by Michael Saylor, has expanded its Bitcoin holdings to 576,230 BTC following its latest acquisition. The announcement on Monday followed Metaplanet’s recent purchase, the second-largest in its Bitcoin-focused history.

Ukraine is drafting legislation to create a strategic national Bitcoin reserve. This initiative, currently in the planning phase, is being developed in collaboration with Binance, a leading international cryptocurrency exchange. If adopted, the initiative could mirror El Salvador’s approach, enhancing legitimacy, regulatory clarity, and long-term investor confidence in sovereign Bitcoin adoption.

Bitcoin’s push above the $105,000 resistance line could pave the way toward a target of $107,757 and potentially new all-time highs. Notably, much of the recent capital accumulation has come from large holders. Over the past 10 days, addresses in the 1,000 BTC UTXO value band increased their combined holdings by 122,540 BTC.

Institutional interest remains uneven, but BlackRock’s ETF is the only major fund to have increased its Bitcoin holdings during this period, adding 10,302 BTC (a 1.66% increase) to reach a total of 631,902 BTC. Other funds have either reduced exposure or held steady.