Report: JPMorgan Prepares To Launch Actively Managed Bitcoin Fund

JPMorgan Chase & Co. JPM is preparing to launch an actively managed Bitcoin fund, according to a report from Coindesk.

What Happened: A number of sources familiar with the matter told Coindesk that the actively managed fund will be offered to “certain clients” and may be available as early as this summer.

The sources also revealed that New York Digital Investment Group (NYDIG), a regulated Bitcoin custodian focused on institutions, will be JPMorgan’s custody provider.

The JPMorgan fund will be offered to private wealth clients and will be the first Bitcoin product offered to clients with direct exposure to the cryptocurrency.

Why It Matters: Over the past few months, institutions have been moving towards embracing cryptocurrencies with a number of new product offerings.

Last month, wall street banking giant Morgan Stanley MS said it would offer its private wealth clients access to Bitcoin through three funds after rising demand from clients.

Another leading banking giant Goldman Sachs Group Inc GS also had plans to roll out a cryptocurrency investment product for its most wealthy clients.

“We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near term,” said Mary Rich, the bank’s head of digital assets.

JPMorgan’s planned offering will make it the largest U.S bank to embrace cryptocurrencies as an asset class.

See also: Largest Crypto Exchange Binance Adds Apple, Microsoft, MicroStrategy Stock Tokens

In the past, many believed the bank would be an unlikely candidate to get involved in the space after CEO Jamie Dimon shared his views on the subject.

“It’s just not my cup of tea,” said Dimon at the time while acknowledging that some “very smart people” have been buying into the cryptocurrency.