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What the Banks and Financial Institutions are Hiding from you about Bitcoin

Updated: Aug 20, 2020

To me, some of the funniest types of headlines to read are when major banks or financial players like the Federal Reserve or US Big 4 banks (in this case JPMorgan) start to become optimistic about crypto.

I view this as a classic and real life case of "if you can't beat them, join them". Don't forget, little more than 3 years ago, the same institutions were denouncing the legitimacy of cryptocurrencies - calling it a fraud and a bubble.

Today, they silently completed a 100% U-turn on their initial stance, with JPMorgan offering full banking and financial support to two major cryptocurrency exchanges - Coinbase and Gemini, and Goldmach Sachs appointing a new Head of Digital Assets. In fact in 2018 (not long after publicly calling Bitcoin a fraud), JPMorgan's CEO Jamie Dimon was already having "secret" meetings with Coinbase's CEO Brian Armstrong. Actions usually speak louder than words, and while JPMorgan's words were strongly advising against Bitcoin, their actions certainly proved otherwise.

Article from Forbes on 30th May 2020

To me, it seems like once again, the major banks and financial institutions are trying to get a slice of the pie before it's customers and strike early. One thing cannot be disputed, and that is institutional interest in Bitcoin is at an all-time high and rising sharp. Wall Street investors like Paul Tudor Jones, as well as renowned financial authors like Robert Kiyosaki (author of Rich Dad, Poor Dad) are just some of the notable investors who are now bullish on Bitcoin. Behind the scenes, the Greyscale Bitcoin Trust (OTCMKTS: GBTC) a publicly traded Bitcoin investment trust fund, has seen record revenues and interest in their Bitcoin trust products, recording inflows of $905.8 million for its second quarter — nearly double the previous quarterly high of $503.7 million in the first three months of this year, while also increasing Assets Under Management (AUM) from 4.5 billion to 5.5 billion . The increase in revenues and interest in Bitcoin is a direct reflection of Wall Street's changing sentiment towards Bitcoin. Read more about Greyscale Bitcoin Trust's and the increasing interest from institutional investors here.

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