JP Morgan is planning to launch a managed bitcoin fund for its wealthy clients, media reports said. The funds will be offered to JP Morgan’s clients in the private wealth division. The move comes after rival Morgan Stanley launched access to bitcoin funds for its own private clients from Galaxy Digital, FS Investments and NYDIG.
It was further reported that the New York Digital Investment Group (NYDIG) would serve as JP Morgan’s custody provider and the fund could be available by mid-2021. Cryptocurrencies are fast becoming a sought for investment, with many comparing it to gold.
Earlier this year, comparing Bitcoin to traditional store of value assets such as gold, lead analyst Nikolaos Panigirtzoglou suggested that Bitcoin’s current market capitalisation of around $580 billion would have to rise by 4.6 times which would create a theoretical price of $146,000.
In a note, Nikolaos wrote, “A crowding out of gold as an ‘alternative’ currency implies a big upside for Bitcoin over the long term. A convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above $146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”
Recently, Tesla sold 10 percent of its Bitcoin holdings to demonstrate the token’s liquidity. Earlier this year, Tesla bought $1.5 billion worth of bitcoin. The company announced the same in a Securities and Exchange Commission (SEC) filing on Monday. The company is planning to soon start accepting bitcoin as a form of payment for its products.