While Dimon still isn’t the cryptocurrency’s biggest fan, JPMorgan has since started planning a Bitcoin fund for a limited number of its private wealth clients.
The big difference between JPMorgan’s proposed Bitcoin fund and most other existing Bitcoin funds is active management.
The best quick illustration of this may be Warren Buffet’s big bet against the hedge fund industry — the famous investor bet a hedge fund manager that an S&P 500 index fund over a 10-year period.
Most other Bitcoin funds , meaning that their prices move in direct correlation with the market without fund management intervention.
So why the rush for a Bitcoin ETF anyway? Simply put, they are easier and more convenient than a direct investment in Bitcoin, especially for investors who are not totally comfortable in a crypto exchange.
JPMorgan does not seem to expect any regulatory trouble launching its fund by this summer.
If all goes as planned, JPMorgan’s fund will be the first actively managed Bitcoin-specific fund.
I predict that it will be more cost-efficient for almost all investors to buy Bitcoin directly or through a no-fee ETF and keep an eye on its price fluctuations.
Active management of Bitcoin, as opposed to active management of an entire portfolio of varied cryptocurrency assets, is a unique and new concept in the crypto market.
If I were to buy more BTC, I would likely do it before this summer with a plan to hold for the long term, since Bitcoin ETF approvals are likely to make headlines and increase trading volume.