JPMorgan CEO Jamie Dimon is under fire from the crypto community after being named an authorized participant (AP) in BlackRock’s updated Form S-1 filing on Dec. 29. The revelation has sparked controversy given Dimon’s previous anti-crypto stance.
BlackRock’s Updated Filing Names JPMorgan as Authorized Participant
BlackRock‘s amended filing for its proposed spot Bitcoin ETF application identified JPMorgan Securities along with Jane Street as authorized participants. This role grants organizations the right to create and redeem shares of an exchange-traded fund (ETF).
Dimon’s Anti-Crypto Comments in Contrast to JPMorgan’s Involvement
Dimon’s inclusion as an authorized participant has drawn attention because of his public criticism of cryptocurrencies. In a December 6 Senate Banking Committee hearing, Dimon expressed a desire to shut down crypto if he had the authority, claiming that Bitcoin’s “only true use case” was to facilitate criminal activities.
Community Points Out JPMorgan’s Hypocrisy
Crypto enthusiasts and pundits have swiftly pointed out the perceived hypocrisy of JPMorgan participating in BlackRock’s Bitcoin ETF while Dimon publicly criticizes the cryptocurrency industry. Some users on social media platforms, including X (formerly Twitter), questioned how JPMorgan could be involved in Bitcoin-related activities despite Dimon’s negative stance on its uses.
Skepticism Regarding JPMorgan’s Intentions
How about that @ewarren, Jamie Dimon’s @jpmorgan is involved with #Bitcoin despite its only use case serving terrorists, drug cartels and other criminals. Or maybe you and Jamie Dimon are simply gas lighting the American public. https://t.co/1dBilLTh7k
— John E Deaton (@JohnEDeaton1) December 29, 2023
Pro-XRP lawyer John Deaton raised skepticism about JPMorgan’s involvement and questioned whether it was an attempt to mislead the public or engage in gaslighting. The community highlighted the contradiction between JPMorgan’s actions and Dimon’s previous negative associations of Bitcoin with criminal activities.
JPMorgan’s Recent Crypto Initiatives Despite Anti-Digital Asset Sentiment
Despite Dimon’s vocal opposition to the digital asset sector, JPMorgan has made recent forays into the crypto space. The bank launched JPM Coin, a crypto token, on a private version of the Ethereum blockchain for its institutional clients. Additionally, JPMorgan rolled out a blockchain-based tokenization platform and contributed to a funding round for Ethereum infrastructure firm Consensys.
The controversy surrounding JPMorgan‘s involvement in BlackRock’s Bitcoin ETF and Dimon’s anti-crypto comments highlights the tension between traditional financial institutions and the evolving crypto landscape. The apparent inconsistency in JPMorgan’s actions adds fuel to the ongoing debate about the industry’s acceptance and integration into mainstream finance.