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JP Morgan Might Not Be Telling The Whole Truth About Its Stance On Bitcoin

JP Morgan Might Not Be Telling The Whole Truth About Its Stance On Bitcoin

JP Morgan Might Not Be Telling The Whole Truth About Its Stance On Bitcoin

During mid to late last week, two things dominated the news in the bitcoin space – China and JP Morgan. The former, and likely the larger input of the two, rested on the Asian giant's actions as far as establishment of policy is concerned in the region. Specifically, the closing down of exchanges by the end of this month and – what now appears to be – the concurrent closing down of mining operations and peer-to-peer setups.

JP Morgan entered the picture when it's CEO Jamie Dimon decided to label bitcoin as a fraud and a scheme that is almost certain to, and we are quoting here, blow up eventually. While this isn't as fundamentally impactful as a Chinese exchange and mining ban, it did serve to compound sentiment in the space, especially among the fringe adopters (the involvement of many of which has served to push price up over last couple of months) and put a strong downside weight on market capitalization.

Fast forward to the start of this week, however, and the picture becomes a little less clear.

It's now transpired that not only is J.P. Morgan handling bitcoin related transactions for its clients, but it is also in the market for a blockchain technician to join its forces.

So, the bitcoin transactions are rooted in what is called XBT, an exchange traded note that's designed to track the underlying price of bitcoin and that, in doing so, affords speculators the opportunity to pick up an exposure to bitcoin and its volatility without actually having to buy BTC.

JPMorgan is facilitating these transactions.

Sure, there is an argument that the company is just serving as a market-maker between third-party buyers and sellers and, sure, when questioned on the matter there is no doubt that Dimon will maintain this angle, but the question remains – if it is against the rules to trade bitcoin at JP Morgan and if the CEO has said he will fire anyone that does (because they are stupid – his words) then it begs the question why an entity like this is one telling the industry one thing while allowing its clients to do another.

Author : Jack Dean

Jack has worked in the cryptocurrency industry for 5 years now as a reporter. His experience is predominately in banking, while he also has a keen interest in the forex world. His daily output is read by thousands of readers globally.

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