A large number of JPMorgan clients see digital currencies like Bitcoin as an asset class, the company’s director of asset and wealth management Mary Callahan Erdoes said.
In a Bloomberg interview released Tuesday, Erdoes stressed that the bank will continue providing crypto services to meet the growing demand, stating:
“A lot of our clients say that’s an asset class, and I want to invest, and our job is to help them put their money where they want to invest.”
Erdoes said that the debate about whether cryptocurrencies constitute an asset class is still ongoing as many experts are concerned about the market’s extreme volatility.
“It’s a very personal thing. We don’t have Bitcoin as an asset class per se,” Erdoes stated, adding that it remains to be seen whether the cryptocurrency is a store of value. “The volatility you see in it today just has to play itself out,” she concluded.
One of the largest investment banking institutions in the United States, JPMorgan is known for its somewhat mixed stance on crypto, with CEO Jamie Dimon referring to Bitcoin as “fraud” back in 2017. The company has since softened its stance on the industry, reportedly preparing to launch an actively managed Bitcoin fund as well as launching debt instruments with direct exposure to a basket of crypto-focused companies.
Related: BlackRock CEO signals low demand for crypto from long-term investors
JPMorgan analysts have been closely monitoring the crypto market, with crypto expert Nikolaos Panigirtzoglou forecasting that Bitcoin will hit $145,000 as its long-term “theoretical target.” In late June, JPMorgan said that institutional investors had little appetite for buying the dip, with strategists reiterating that Bitcoin would be trading between $23,000 and $35,000 over the medium term.