Business 18 September 2017

Jasmine Solana

Oh, the irony: JPMorgan buys low after CEO calls Bitcoin a ‘fraud’

JPMorgan Chase chief executive Jamie Dimon went on a tirade last week in a conference in New York, where he condemned Bitcoin and threatened to fire any employee who will trade the cryptocurrency.

Dimon’s rant against Bitcoin, which caused the currency’s price to drop to the $3,800 level, didn’t come as a surprise as the banker has been an outspoken nemesis of Bitcoin. The surprise came several days after Dimon’s diatribe made headlines.

On September 15, JP Morgan Securities Ltd. and Morgan Stanley bought an estimated €3 million worth of XBT shares, reported Bitcoin.com, quoting the public records of Nordnet trading logs.

XBT shares, also known as exchange-traded notes (ETNs), are commonly used by mainstream investors and financial management firms to invest in Bitcoin through regulated channels in the public stock market. Denmark-based Saxo Bank offers Bitcoin-based notes called the Bitcoin Tracker, which track the cryptocurrency’s price movements against the Euro and U.S. dollar.

A screenshot of the Nordnet trading log, posted on Twitter by Bitcoin trader @IamNomad, showed several companies, such as Goldman Sachs and Barclays, have also bought the dip caused by Dimon’s trash talk and the recent regulatory crackdown in China. But among these companies, it was JPMorgan’s team that have purchased the most number of XBT notes.

Bitcoin developer Andrew DeSantis also revealed on Twitter that the banking giant had purchased Bitcoin after its price slid using many accounts under JPMorgan Securities Ltd.

As @IamNomad pointed out, it’s possible that a department at JPMorgan could have invested in Bitcoin XBT as the company’s traders are forbidden from directly investing in Bitcoin. Another plausible explanation of JPMorgan’s bank transfers to Nasdaq Nordic is that the bank’s clients have been buying Bitcoin ETNs in Bitcoin XBT.

The bigger picture, however, is that JPMorgan has been playing both sides, acting as a broker dealer on one side while talking trash on the other—a role it has been doing for years. After all, the banking giant was among the chief architects of the 2008 global financial crisis, which paved the way to the rise of cryptocurrencies.
Does this mean that heads will start rolling at JPMorgan? Or will Dimon honor his word and fire himself?
Your move, sir.

*****
Barbuda was devastated last week by Irma’s Category 5 fury, leaving its 1,800 residents essentially homeless after 95% of the island’s structures were flattened. The island is currently deserted, and when the storms finally pass, the cost of restoring Barbuda to some level of normalcy will be staggering.
To donate to The Barbuda Relief Fund using Bitcoin or Bitcoin Cash, please use 1L89GJ3ecXh2PdZpDxPd5YwaLY1bYNcsNS (Bitcoin Cash), and 15fT2nvS8NUs9D9aLF12rVAKb37cUiuoar (Bitcoin). Email Bill@Calvinayre.com to have your donation matched by the Calvin Ayre Foundation.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.

Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.

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