JPMorgan Chase CEO Jamie Dimon remains doubtful about Bitcoin, calling it a “pet rock” in a CNBC interview at the World Economic Forum in Davos. This echoes his previous view from 2021, where he dismissed Bitcoin as “worthless” and a “hyped-up fraud.” Despite the increasing popularity of cryptocurrencies, Dimon continues to question the value and practicality of Bitcoin.
He criticized Bitcoin, calling it “worthless” and a tool for criminals, and warned that a recession could hit this year. He also said that he sees no value in Bitcoin and is done talking about it, despite the recent debut of several Bitcoin exchange-traded funds in the US.
On January 10, 2024, the US Securities and Exchange Commission (SEC) approved the first US-listed exchange-traded funds (ETFs) for Bitcoin, including applications from BlackRock, Fidelity, Invesco, VanEck, and others.
The approval of Bitcoin ETFs is considered a watershed moment for the cryptocurrency industry and a significant win for Wall Street. The ETFs will allow traditional investors to gain exposure to Bitcoin without owning the cryptocurrency directly, making it easier for them to invest in the asset class.
The SEC’s approval of the ETFs was not unanimous, with two Democratic commissioners voting against it, citing concerns about investor protection. Despite the approval, the SEC has warned investors to remain cautious about the risks associated with Bitcoin and the products whose value it is linked to.
Furthermore, the US-listed Bitcoin exchange-traded funds (ETFs) saw $4.6 billion worth of shares trade hands on the first day of trading. This significant trading volume indicates strong investor interest and confidence in these newly approved ETFs. Yet Dimon sees no value in the asset.
The CEO has been a vocal critic of Bitcoin and cryptocurrencies, calling Bitcoin a “fraud” in the past. However, Dimon has also acknowledged the potential of blockchain technology, saying that it has great potential and that JPMorgan uses it.
In August 2021, JPMorgan, led by Dimon, quietly unveiled access to a half-dozen crypto funds, including a new Bitcoin fund created with crypto firm NYDIG, indicating a shift in the bank’s stance towards cryptocurrencies.
At the event, he also spoke about the US economy, where he voiced caution about the U.S. economy in the next two years due to a combination of financial and geopolitical risks.
