ETFs
“We will be spectators of crypto ETFs”
JP Morgan Asset Management (JPMAM) will not participate in the cryptocurrency exchange-traded product (ETP) space, although it called the wrapper a “great entry point.”
Speaking to ETF Feed ETF Ecosystem Unwrapped event Travis Spence, head of EMEA ETF distribution at JPMAM, said it would be an interesting space to watch, but not one where the group can add value.
“What we’ve seen in the US since January in the crypto space is that ETFs can provide a great entry point,” Spence (photo) said.
“From our perspective, it’s going to be an interesting space to watch, but we’re going to be spectators.”
He added that there were two reasons not to enter space.
Firstly, Spence does not see an “informational advantage” that the asset manager can bring to the space and, secondly, the group is unsure of the role cryptocurrencies will play in a multi-asset portfolio.
“We don’t think we can add an active lens [on crypto] because we don’t think we have an informational advantage from an academic point of view,” he said.
“Secondly, if we look at our multi-asset portfolios within JPMAM, we don’t use crypto and don’t know where that fits in a multi-asset portfolio.”
JP Morgan CEO Jamie Dimon has long been a critic of Bitcoin and has repeatedly called for the cryptocurrency to be banned.
The group does, however, have a blockchain activity and also has its own stablecoin JPM Coin which it offers to institutional clients.
Flows have been accumulating into Bitcoin ETFs in the United States since they hit the market in January, with 34 ETFs housing more than $59 billion in assets under management.
BlackRock’s $19.5 billion iShares Bitcoin Trust (IBIT) recently became the largest ETF in the industry, surpassing the $19.3 billion Grayscale Bitcoin Trust ETF (GBTC) .