JPMorgan Chase has been routing customer orders for bitcoin despite CEO Jamie Dimon calling cryptocurrency “a fraud. Like other Wall Street what is xbt bitcoin, JPMorgan acts as an agent for buyers and sellers of Bitcoin XBT, an exchange-traded note designed to track the value of the crypto currency. JPMorgan does not take positions in the instrument with its own capital and routes the orders electronically to exchanges, JPMorgan spokesman Brian Marchiony said.
These are clients purchasing third-party products directly. JPMorgan’s relationship with Bitcoin XBT came into question over the weekend when the financial blog Zerohedge asked why the bank was involved with the trading after CEO Jamie Dimon called bitcoin a fraud and said he would fire anyone at the bank who trades it. Bitcoin is a digital currency that enables individuals to transfer value to each other and pay for goods and services outside of the regulated financial system. Because it is not backed by any government and has been tied to crimes, including money laundering, hacking and drug trafficking, most financial institutions have stayed away from dealing inbitcoin. Dimon captured that sentiment in his comments last week. Even so, major financial firms including JPMorgan have invested in a technology called blockchain that underpins bitcoin transactions in hopes that it can be used for other purposes, such as settling ordinary trades. 4,200 after Dimon spoke and China reportedly cracked down on crypto currency exchanges.
Along with JPMorgan, more than a dozen banks, including Morgan Stanley, Goldman Sachs Group Inc and Credit Suisse Group AG, have acted as brokers for buying and selling Bitcoin XBT on Nasdaq’s Stockholm-based exchange, according to Swedish online bank Nordnet AB. Other exchanges want to trade, too. CBOE Holdings Inc has applied with U. CBOE CEO Edward Tilly said last week at the same conference where Dimon spoke. Sign Up for Our Newsletters Sign up now to receive FORTUNE’s best content, special offers, and much more. Fortune may receive compensation for some links to products and services on this website.
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