If you are looking for a compelling antagonist in the crypto space, you might be disappointed by Jamie Dimon. The CEO of JPMorgan Chase has been one of the most vocal and consistent critics of cryptocurrencies, dismissing them as a fraud, a scam, and a bubble. He has also warned his employees not to trade them, and his bank has been accused of manipulating the market by spreading negative news.
Jamie Dimon trying to psychic on crypto?
Jamie Dimon, the CEO of JPMorgan Chase, has been known for his outspoken views on cryptocurrencies. He famously called Bitcoin a “fraud” in 2017, and later said he regretted that remark. He has also expressed skepticism about the long-term viability of crypto assets, saying they are not backed by anything and have no intrinsic value.
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However, in a recent interview with CNBC, Dimon seemed to have a change of heart. He said he was “not going to talk about Bitcoin anymore” and that he was “open-minded” about the potential of blockchain technology. He also revealed that some of his clients were interested in investing in crypto, and that JPMorgan was ready to offer them the services they need.
Does this mean that Dimon has become a crypto believer? Not quite. He still maintained that crypto was not his “cup of tea” and that he personally would not invest in it. He also warned that crypto could face more regulation and scrutiny from governments and central banks in the future.
So, what is behind Dimon’s apparent shift in tone? Is he trying to psychic on crypto, as some observers have suggested? Psychic on crypto is a term coined by Michael Saylor, the CEO of MicroStrategy, who has been one of the most vocal and influential advocates of Bitcoin. It refers to the ability to foresee the future of crypto and act accordingly, even if it goes against one’s own beliefs or preferences.
Saylor himself claimed to have psychic on crypto when he decided to invest billions of dollars of his company’s treasury in Bitcoin, despite being a skeptic for years. He said he realized that Bitcoin was a superior store of value than cash or gold, and that it was inevitable that more institutions and individuals would adopt it.
Perhaps Dimon is following Saylor’s example and trying to psychic on crypto as well. He may not like or understand crypto, but he recognizes that it is a force that cannot be ignored or dismissed. He may also see an opportunity to profit from it by serving his clients who want exposure to it. He may also want to avoid being left behind by his competitors who are more open to crypto, such as Goldman Sachs or Morgan Stanley.
Whatever his motives are, Dimon’s latest comments show that he is no longer hostile or dismissive of crypto. He may not be a fan, but he is not a foe either. He is trying to psychic on crypto, and that is a sign of respect and recognition for the crypto industry.
But despite his apparent hostility, Dimon is not a very interesting or effective villain. He is not a visionary who sees the flaws in the crypto system and tries to expose them. He is not a mastermind who plots to destroy the crypto industry and its supporters. He is not even a hypocrite who secretly invests in crypto while publicly bashing it.
He is just a boring banker who does not understand or care about the potential of crypto. He is stuck in his old-fashioned worldview, where centralized institutions are the only legitimate and trustworthy actors in the financial system. He is blind to the innovation and disruption that crypto brings to the world. He is deaf to the voices of millions of people who use crypto as a way to escape oppression, censorship, and corruption, He is not a villain. He is a relic.
BlackRock now largest institutional holder of Bitcoin with 25,067 BTC
Meanwhile, BlackRock, the world’s largest asset manager, has revealed that it holds more than 25,000 bitcoins in its spot Bitcoin ETF, which was launched in October 2023. The ETF, which trades under the ticker BTCX on the Toronto Stock Exchange, allows investors to gain exposure to the price of bitcoin without having to buy or store the cryptocurrency themselves.
According to the latest disclosure, BlackRock’s ETF had 25,067 bitcoins as of January 18, 2024, worth over $1.06 billion at the current market price of $42,400 per bitcoin. This makes BlackRock one of the largest institutional holders of bitcoin in the world, surpassing the likes of MicroStrategy, Tesla and Square.
The spot Bitcoin ETF is different from the futures-based Bitcoin ETFs that have been approved by the US Securities and Exchange Commission (SEC) in late 2021. While the futures-based ETFs track the price of bitcoin through contracts traded on regulated exchanges, the spot ETF directly holds the underlying asset in a custodial arrangement.
This means that the spot ETF does not incur the costs and risks associated with rolling over futures contracts, which can erode the returns for investors. Moreover, the spot ETF may more closely reflect the actual supply and demand dynamics of the bitcoin market, as it increases the demand for physical bitcoins rather than synthetic ones.
BlackRock’s spot Bitcoin ETF is not the first of its kind in Canada, as several other asset managers have launched similar products since February 2021, when the Canadian regulators became the first in North America to approve such an innovation. However, BlackRock’s ETF has quickly become the most popular and successful among its peers, as it has attracted more assets and trading volume than any other Canadian spot Bitcoin ETF.
As of January 18, 2024, BlackRock’s ETF had a market capitalization of $1.12 billion and an average daily trading volume of $18.7 million, according to data from Bloomberg. In comparison, the second-largest spot Bitcoin ETF in Canada, managed by Purpose Investments, had a market capitalization of $546 million and an average daily trading volume of $7.9 million.
The success of BlackRock’s spot Bitcoin ETF may be attributed to several factors, such as its brand recognition, its low management fee of 0.75%, and its partnership with Coinbase Custody, one of the most trusted and regulated custodians in the crypto space.
Additionally, BlackRock may have benefited from its timing, as it launched its ETF amid a renewed interest and optimism in the bitcoin market, following the approval of the first US Bitcoin futures ETFs and the adoption of bitcoin as legal tender by El Salvador.
Since its inception on October 15, 2021, BlackRock’s spot Bitcoin ETF has delivered a return of 26%, outperforming both the futures-based Bitcoin ETFs in the US and the spot Bitcoin ETFs in Canada.
BlackRock’s spot Bitcoin ETF is a significant milestone for the mainstream adoption and acceptance of bitcoin as an asset class. It demonstrates that a reputable and regulated institution like BlackRock is confident and comfortable in holding and offering exposure to bitcoin to its clients.
It also shows that there is a strong and growing demand for bitcoin among investors who seek to diversify their portfolios with an alternative and uncorrelated asset that has proven to be resilient and appreciating over time. As more investors and institutions embrace bitcoin, we may see more innovation and competition in the crypto ETF space, both in Canada and in other jurisdictions.