JPMorgan reportedly launches an in-house bitcoin fund for its bank clients.

According to the CoinDesk report, JPMorgan Chase has set up an in-house bitcoin fund, which it started offering to wealthy customers and bank clients. The report further revealed that the bank is pitching the passively managed crypto fund to its private bank clients, and it has yet to attract any investment from them. The fund, which is set up in partnership with bitcoin-focused financial services provider NYDIG, was launched on a call with advisors on Wednesday, the report said.

The bitcoin fund would be actively managed. 

According to the report, the in-house bitcoin fund would be actively managed, unlike the passive crypto funds offered by Pantera Capital, Galaxy Digital, and others. These track crypto market indexes rather than use money managers to actively decide allocations. JPMorgan CEO, Jamie Dimon, warned investors about buying crypto assets as recently as May, saying they were inferior to traditional assets. He had previously said he thinks bitcoin is dangerous and fraudulent. Bitcoin has gained a lot of mainstream exposure since the start of the year.

JPMorgan had hinted at experimenting with bitcoin. 

The CEO of JPMorgan’s asset and wealth management business, Mary Callahan Erdoes, had said in June that its clients were keen on crypto and saw bitcoin as an asset class. Last month JPMorgan became the first major bank to allow its retail wealth management clients to invest in crypto products. Customers do not have to be in direct contact with the firm’s advisors to invest in the products – everyone from ultrarich private-bank clients to users of the Wall Street Bank’s trading app, Chase can do so. Several other banks have also started offering crypto services this year.