Bitcoin price jumped by $500 down from $3000 to $3500 in a matter of few hours as word got out that JP Morgan, the global banking giant, has bought 95 BTC.
The purchase comes in the form of 19,102 bitcoin shares in the Swedish Nasdaq traded bitcoin ETN worth some half a million dollars. The banking giant has sold around 9,000 shares, which equals to around 40 bitcoins, while the rest is still with them according to data provided by ETN.
Why did JP Morgan purchase the bitcoins is unclear at this stage, but it seems that because bitcoin is completely unrelated to other assets, it would be a great option for portfolio diversification. The purchase, however, is made just days after Jamie Diamon said he’d fire anyone who trades bitcoin within his company. Which may suggest the CEO is completely out of touch or the bank is fully ignoring him, perhaps waiting out his retirement.
Amber Baldet, one of the new generation of bankers who is leading the Blockchain efforts at JP Morgan, met Diamon’s comments with a shrug.
So it may well be the case Diamon simply can’t get his head around everything that’s happening in his own company and most probably can’t imagine how this new shiny thing would work or be incorporated within the services they provide.
Nor does the 61 year old really have to understand any of it since he’ll probably soon pass the role to a much younger individual. We recommend his daughter, the genius:
“I’m not saying ‘go short bitcoin and sell $100,000 of bitcoin before it goes down,” Jamie Dimon said before adding: “This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she’s a genius.”
Julia Dimon, a Harvard graduate who has been working for the past six years in Capital Markets at Allen & Company, a boutique investment bank of sort.
A 29 year old typical millennial as far as this space is concerned, who perhaps might be typical of a new generation of bankers too. That’s who we look to, not least because in many ways they are currently in charge and soon they will be fully in charge of running the world.