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JPMorgan says a lot of its asset and wealth management clients think cryptocurrency is an asset class and they want to invest in it. âOur job is to help them to put their money where they want to invest,â said the CEO of J.P. Morgan Asset & Wealth Management.
A Lot of JPMorgan Clients Consider Cryptocurrency an Asset Class
Mary Callahan Erdoes, J.P. Morgan Asset & Wealth Managementâs CEO, talked about her firmâs approach to cryptocurrencies in an interview with Bloomberg Wealth, published Tuesday.
JPMorgan Chaseâs asset and wealth management line of business is one of the worldâs largest investment managers and private banks, with $3.4 trillion in client assets.
Erdoes, who joined the firm 20 years ago, was asked what she would do if a client came to JPMorgan and said that they wanted to invest in cryptocurrency. Specifically, she was asked: âDo you say you shouldnât do it? do you facilitate it? or are you still evolving your position?â
The chief executive replied by first commenting about blockchain technology. âBlockchain technology ⊠itâs very real and itâs changing all of the ways that we digitally interact in the different financial markets,â she opined.
The J.P. Morgan Asset & Wealth Management CEO proceeded to talk about cryptocurrencies. âDigital currencies are new, and in general digital currencies are being debated as to whether they are an asset class or not,â she described, elaborating:
A lot of our clients say thatâs an asset class and I want to invest. Our job is to help them to put their money where they want to invest.
âItâs a very personal thing,â Erdoes continued. âWe donât have bitcoin as an asset class per se, and time will tell whether it has a store of value. But the volatility that you see in it today, it just has to play itself out over time.â
Her comments echoed what JPMorgan CEO Jamie Dimon said in May when he personally advised people to âstay awayâ from cryptocurrency. However, he noted, âThat does not mean the clients donât want it ⊠I donât tell people how to spend their money, regardless of how I might personally feel about something.â
While JP Morgan may not currently see cryptocurrency or bitcoin as an asset class, rival investment bank Goldman Sachs said in May that bitcoin has become âan investable asset.â The firm explained, âClients and beyond are largely treating it as a new asset class, which is notable â itâs not often that we get to witness the emergence of a new asset class.â
The CEO of Blackrock, the worldâs largest asset manager, said in April: âI am fascinated by it [cryptocurrency] as an asset class ⊠I do believe this could become a great asset class.â
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