Although Bitcoin (BTC) not yet established as an “asset class per se,” JPMorgan considers it important to meet its clients’ demand for investments in cryptocurrencies, according to a senior wealth management executive.
A large number of JPMorgan clients view digital currencies like Bitcoin as an asset class, said the company’s director of asset and wealth management, Mary Callahan Erdoes.
In an interview with Bloomberg released on Tuesday, Erdoes stood out that the bank will continue to offer cryptocurrency products and services to meet a growing demand, informing:
“Many of our clients say, ‘This is an asset class and I want to invest,’ and our job is to help them put their money where they want it.”
Erdoes said the debate over whether or not cryptocurrencies constitute an asset class is still ongoing, as many experts are concerned about the extreme volatility of this market.
“This is a very personal opinion. We don’t have Bitcoin as an asset class by itself,” Erdoes said, adding that it is not yet known whether cryptocurrency is, in fact, a store of value. “The volatility you see today needs to be extinguished,” she concluded.
One of the largest US investment banks, JPMorgan is known for its somewhat confused stance on the cryptocurrency market. In 2017, JPMorgan CEO Jamie Dimon referred to Bitcoin as a “fraud.” Since then, the bank has softened its stance on the industry, reportedly preparing to launch a Bitcoin management fund, as well as launching debt securities with direct exposure to a basket of companies focused on cryptocurrencies.
JPMorgan analysts have been closely monitoring the market. Subject matter expert Nikolaos Panigirtzoglou even predicted that, in the long run, Bitcoin will hit the “theoretical target” of $145,000. In late June, JPMorgan said institutional investors had little appetite to buy into the bear market. Bank strategists said Bitcoin would be trading in a price range of between $23,000 and $35,000 in the medium term.
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