JPMorgan Chase’s CEO Jamie Dimon has long been one of Bitcoin’s most vicious skeptics. In 2017, he said he would fire any employee who traded Bitcoin for being “stupid,” and called it a “fraud.” Last year, he called the cryptocurrency a “pet rock.”
But this week, Dimon announced that JPMorgan Chase would allow its clients to buy Bitcoin. He said it with a grimace on his face, speaking at JPMorgan Chase’s investor day, and rattled off a list of criticisms shared by other Bitcoin cynics, including that the currency facilitated sex trafficking and terrorism. But he conceded that his clients could do what they wished with their money. “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin. Go at it.”
The decision marks a significant symbolic and practical victory for the Bitcoin community, which, despite its anti-establishment beginnings, has sought institutional acceptance. Dimon, a heavyweight of traditional finance, has consistently used his perch to discourage regular investors and other financial leaders from getting involved. But he has also often been called a pragmatist—and his shift on Bitcoin reflects a changed political climate and mounting client demand.
Read More: Why Trump’s Meme Coins Have Alarmed Both Crypto Insiders and Legal Experts
Dimon’s decision arises from a year of mounting competition and interest in Bitcoin from other large firms. The entwining of Bitcoin and traditional finance kicked off in January 2024, when the U.S. Securities and Exchange Commission reluctantly gave the green light for Bitcoin ETFs—investment vehicles which allow people to bet on Bitcoin’s price without actually holding it—to enter the market. Billions of dollars immediately flowed into these ETFs, proving their value to major financial institutions like BlackRock. That summer, Morgan Stanley allowed its wealth advisors to sell Bitcoin ETFs to clients, and Goldman Sachs purchased $418 million worth of them.
Then, Donald Trump won the presidency, sending crypto hype into overdrive. On the campaign trail, Trump won over many crypto fans for accusing Biden of choking off the industry. Trump then pledged to make the U.S. the “Bitcoin capital of the world.”
Since his election, Trump has thrown both his government influence and personal brand behind cryptocurrency efforts. And the banking sector has been significantly impacted. In his first week in office, Trump repealed SAB 121, a Biden-era accounting rule which discouraged banks from handling crypto assets. The Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency then rescinded their anti-crypto guidance, leaving much greater discretion to the banks on how to deal with digital assets.
Many banks jumped in. Goldman Sachs amassed a stockpile of over $1 billion worth of Bitcoin ETFs. The CEOs of Bank of America and Morgan Stanley both expressed interest in offering crypto products.
Dimon could have stuck to his guns and kept JPMorgan out of it. But the bank—which is the biggest in America, with over $3 trillion in assets worldwide— risked losing high-net-worth individuals and institutional clients seeking to diversify their portfolios at a moment of extreme financial volatility.
So now, JPMorgan customers will be allowed to buy Bitcoin, he said on Monday. He added, however, that the bank would not custody Bitcoin, necessitating a trusted third party.
Dimon’s decision could bring about further change. His capitulation could serve as a powerful signal to other holdouts in traditional finance. And JPMorgan’s massive customer base could bring in a new wave of Bitcoin investors.
Crypto Twitter, unsurprisingly, gleefully celebrated his about-face. “Jamie Dimon has bent the knee,” Cory Klippsten, the CEO of Swan, wrote on Twitter.
The post The Significance of Jamie Dimon’s Reluctant Bitcoin Surrender appeared first on TIME.
