JPMorgan Weighs Offering CME Bitcoin Futures to Clients

JPMorgan Chase & Co. is weighing whether to help clients bet on the price of bitcoin via the CME Group Inc.’s proposed futures contracts, according to a person with knowledge of the situation.

The largest U.S. bank is gauging client demand and the potential risks of facilitating their trades, the person said, asking not to be identified talking about internal deliberations. Chicago-based CME Group has said it hopes to offer bitcoin futures by year-end.

Bitcoin’s eight-fold surge in value this year is forcing Wall Street banks to balance clients’ interest in speculating on the cryptocurrency with executives’ skepticism about its future. JPMorgan Chief Executive Officer Jamie Dimon has been one of bitcoin’s most prominent detractors, calling it a fraud and deriding buyers as “stupid,” but his finance chief, Marianne Lake, has struck a more measured tone. The firm is “open minded” to the potential uses for digital currencies so long as they are properly regulated, she said last month.

JPMorgan already allows clients some access to bitcoin through an exchange-traded note, which involves routing their orders to exchanges. Handling client trades of futures contracts is conceptually similar but could still pose some risks, according to the person.

The New York-based bank’s deliberations were reported earlier by the Wall Street Journal. Exchange operator Cboe Global Markets Inc. is competing with CME Group to introduce bitcoin futures.

Comments

comments

Filed in: Mainstream Bitcoin Tags: ,

You might like:

Texas Hits Another Crypto Lending Platform with Cease-and-Desist Texas Hits Another Crypto Lending Platform with Cease-and-Desist
Korean Exchange Halts Trading Over KYC Concerns Korean Exchange Halts Trading Over KYC Concerns
Startup Raises $20 Million to Build 'YouTube on the Blockchain' Startup Raises $20 Million to Build 'YouTube on the Blockchain'
US Commodities Regulator Warns on Crypto Retirement Scams US Commodities Regulator Warns on Crypto Retirement Scams
7 Tough Legal Lessons for Crypto Entrepreneurs 7 Tough Legal Lessons for Crypto Entrepreneurs
Bitcoin's Price Dips Below $7K As Crypto Selloff Continues Bitcoin's Price Dips Below $7K As Crypto Selloff Continues
South Korea: North Korea Stole Millions From Crypto Exchanges Last Year South Korea: North Korea Stole Millions From Crypto Exchanges Last Year
The 'Dean of Blockchain Lawyers' Just Got a New Job The 'Dean of Blockchain Lawyers' Just Got a New Job
© 2018 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.