Today, JPMorgan (NYSE:JPM) made a rather intriguing announcement. Indeed, investors in JPM stock have quite a bit to digest on this news.
The company’s announcement that JPMorgan will now allow all clients to trade crypto has come as a shock to many. Largely, this is because investors may remember CEO Jamie Diamon’s high-profile disregard for cryptocurrencies in the past. In 2017, the JPMorgan CEO called crypto a “fraud.” Today, the JPMorgan chief is promoting the bank’s trading services to retail clients.
According to recent reports on the subject, JPMorgan’s move to allow all self-directed clients using the Chase trading app to trade crypto is a marked departure from the bank’s previous stance on crypto. That said, JPMorgan has allowed private wealth clients to purchase actively managed Bitcoin (CCC:BTC-USD) funds prior to this announcement. Accordingly, this shift has been underway for some time.
The announcement today of JPMorgan’s move into crypto has done little to help the company’s stock price. In fact, JPM stock is currently down approximately 1% at the time of writing on an otherwise red day for banks.
That said, let’s dive into the five funds JPMorgan is now allowing retail clients to purchase.
Investors in JPM Stock Digesting Move Toward Crypto
The five funds JPMorgan is allowing clients to trade are the following:
- Grayscale Bitcoin Trust (OTCMKTS:GBTC)
- Grayscale Bitcoin Cash Trust (OTCMKTS:BCHG)
- Grayscale Ethereum Trust (OTCMKTS:ETHE)
- Grayscale Ethereum Classic Trust (OTCMKTS:ETCG)
- Osprey Bitcoin Trust (OTCMKTS:OBTC)
These funds are among the largest in the world in terms of crypto holdings. They are also exclusively focused on either Bitcoin or Ethereum (CCC:ETH-USD), the world’s two largest cryptocurrencies. Indeed, as far as “no brainer” crypto funds go, these are among the top choices many would expect to see a major bank allow.
Each of these funds trade over the counter, on the pink sheets. Investors looking to gain exposure to these types of funds should remain cognizant of the risks of investing in such stocks. Lower liquidity, higher spreads and increased volatility are three risks that tend to materialize with such holdings.
That said, these are five funds with significant size and scale. Concerns about liquidity and spreads may be lessened to a certain degree. However, volatility in the crypto space is a given. Accordingly, these are investments for those with iron stomachs.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.