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    November 22, 2017

    JP Morgan Chase about-faces, may add Bitcoin Futures trading

    JP Morgan CME Bitcoin

    According to the Wall Street Journal, JP Morgan Chase may be considering providing access to CME Group’s Bitcoin futures trading.

    Despite JP Morgan CEO Jamie Dimon’s harsh stance on Bitcoin – having previously dubbed the cryptocurrency a ‘fraud’ and threatening to fire any of his employees who dare invested in it – a new report by the Wall Street Journal illustrates that the firm may be preparing to offer access to CME Group’s Bitcoin Futures trading.

    CME Group announced earlier this month that it would proceed to offer a Bitcoin Futures contract in the fourth quarter of 2017 pending a regulatory review period.

    Read: Morocco’s Central Bank threatens to fine cryptocurrency transactions

    The Journal reports that ‘J.P. Morgan is considering whether to provide its clients access to CME’s new Bitcoin product through its futures-brokerage unit’ – giving an indication that the firm may be chartering a divergent course from its CEO’s outspoken views on digital currencies.

    Should JP Morgan elect to offer access to CME Group’s Bitcoin Futures trading, it may join Man Group in doing so – Man Group CEO Luke Ellis recently quipped that Bitcoin Futures trading may soon form part of the company’s ‘investment universe’.

    Ellis did not confirm, however, if Man Group would trade CME’s Bitcoin Futures or whether the company would pursue direct interaction with cryptocurrency markets.

    In either case, CME’s decision to offer Bitcoin Futures trading is dependent on a regulatory review period. In an open letter last week, Thomas Petterfy – Chair of the Interactive Brokers Group – expressed concern before the United States Commodity Futures Trading (CFTC), citing that ‘there is no fundamental basis’ for valuation of Bitcoin or other cryptocurrencies.

    The Commodity Futures Trading Commission will ultimately be able to issue a verdict on the debate and, should the firm’s offering remain unopposed, CME Group may be able to launch its Bitcoin Futures contract by mid-December this year.

    Read: The International Monetary Fund may develop its own cryptocurrency

    What are your thoughts? Be sure to let us know your opinion in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

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