JPMorgan may hate Bitcoin, but millions of crypto think differently

JPMorgan Chase really seems to hate Bitcoin and crypto, as long as you ignore the millions of dollars they are throwing at the sector.

For years, the investment bank has pursued investments in blockchain and cryptocurrency while talking down the industry. That trend was continued recently by JPMorgan President Daniel Pinto, who on Monday told CNBC that crypto is a small asset class that “is kind of irrelevant in the context.”

Dear JPMorgan, You seem confused about crypto

JPMorgan Chase may be the biggest of the Big Four investment banks, but when it comes to crypto, it seems confused about whether it’s coming or going.

In a recent interview with CNBCcompany president Daniel Pinto played down the influence of crypto on international markets.

“The reality is that the current form of crypto has become a small asset class that is somewhat irrelevant in the scheme of things,” Pinto said. Still, the executive went on to admit that something could be brewing in the wider sector as he added, “… the technology, the concepts, something is probably going to happen there – just not in its current form.”

The apparent disinterest from JPMorgan appears to be a step up in some respects.

In 2021, the company’s CEO Jamie Dimon claimed that “I personally believe that Bitcoin is worthless.”

Prior to this, Dimon called Bitcoin “a scam” and “cheating gold”, while calling cryptocurrencies “decentralized Ponzi schemes”.

Following the JPMorgan Crypto Trail

While JPMorgan executives have had fun bashing all the blockchains, the company has followed policies that contradict their edicts.

In 2019, the company launched its very own cryptocurrency (or should that be decentralized Ponzi scheme?) in the form of JPM Coin.

In 2020, the bank created an entire blockchain division called Onyx, which they say “pioneered the world’s first bank-led blockchain platform for the exchange of value, information and digital assets.”

The company also has a number of blockchain and crypto investments.

This year alone, the bank participated in a $60 million funding round for chain analytics firm Elliptic, and a $32 million funding round with rival organization TRM Labs.

In 2021, the agreements were significantly larger. In January 2021, JPMorgan invested $100 million directly in Figure, a company that leverages blockchain technology in the mortgage market. Other investments included ConsenSys, the company behind MetaMask. In that case, JPMorgan participated in a funding round with UBS and Mastercard, raising $65 million.

What does it all mean?

While JPMorgan’s total investment in blockchain is difficult to measure, the company has publicly stated that it spends $12 billion per year on technology projects. It includes machine learning or artificial intelligence such as blockchain.

Why then all the hate from the men at the top? It’s hard to say with confidence, but when words and actions don’t match, it’s probably better to judge them by their actions. Even haters want those sweet crypto gains.

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