According to JPMorgan, many of its asset and wealth management clients think cryptocurrency is an asset class and they want to invest in it. “Our job is to help you put your money where you want to go,” said JP Morgan Asset & Wealth Management CEO.
Many JPMorgan customers view cryptocurrency as an asset class
Mary Callahan Erdoes, CEO of JP Morgan Asset & Wealth Management, spoke about her company’s approach to cryptocurrencies in an interview published Tuesday with Bloomberg Wealth.
JPMorgan Chase’s wealth and management division is one of the world’s largest investment managers and private banks, with $ 3.4 trillion in client assets.
Erdoes, who joined the company 20 years ago, was asked what she would do if a client came to JPMorgan and said they wanted to invest in cryptocurrency. Specifically, she was asked: “Are you saying you shouldn’t? do you make it easier? or do you develop your position even further? “
The CEO responded with an initial comment on blockchain technology. “Blockchain technology … it’s very real and it’s changing all the ways we digitally interact in different financial markets,” she said.
The CEO of JP Morgan Asset & Wealth Management continued to talk about cryptocurrencies. “Digital currencies are new, and there is a general discussion about whether or not digital currencies are an asset class,” she said:
Many of our clients say this is an asset class and I want to invest. Our job is to help you put your money where you want to invest.
“It’s a very personal thing,” Erdoes continued. “We don’t have Bitcoin as an asset class per se, and time will tell if it has a store of value. But the volatility that you see in it today simply has to play itself out over time. “
Their comments echoed what JPMorgan CEO Jamie Dimon said in May when he personally advised people to stay away from cryptocurrencies. He noted, however, “That doesn’t mean that customers don’t want it … I don’t tell people how to spend their money regardless of how I personally feel about something.”
While JP Morgan may not currently view cryptocurrency or bitcoin as an asset class, rival investment bank Goldman Sachs said in May that bitcoin has become an “investable asset.” The company stated, “Customers and beyond are largely treating it as a new asset class, which is remarkable – it is not often that we see a new asset class emerge.”
The CEO of Blackrock, the world’s largest wealth manager, said in April: “I’m fascinated by this [cryptocurrency] as an asset class … I think this could be a great asset class. “
What do you think of the comments from the JPMorgan manager? Let us know in the comment section below.
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