JPMorgan CEO Jamie Dimon is facing criticism from the crypto community after being named an authorized participant (AP) by BlackRock in its updated Form S-1 filing on December 29. The move has raised eyebrows due to Dimon’s previous anti-crypto comments, questioning the sincerity of JPMorgan’s involvement in BlackRock’s proposed spot Bitcoin ETF.
The Authorized Participant Role: An authorized participant is an organization granted the right to create and redeem shares of an exchange-traded fund (ETF). In BlackRock’s amended filing, JPMorgan Securities was listed as one of the authorized participants for its proposed spot Bitcoin ETF, alongside Jane Street.
Dimon’s Anti-Crypto Stance: During a December 6 hearing of the United States Senate Banking Committee, Jamie Dimon expressed strong opposition to cryptocurrencies, stating that if he had the authority, he would attempt to shut down the crypto industry. He argued that Bitcoin’s “only true use case” is to facilitate criminal activities.
Hypocrisy and Community Backlash: Crypto pundits quickly pointed out the perceived hypocrisy of JPMorgan acting as an authorized participant in BlackRock’s Bitcoin ETF while publicly condemning cryptocurrencies. Critics on social media platforms like X (formerly Twitter) highlighted the contradiction and questioned JPMorgan’s involvement in facilitating crypto-related activities.
Skepticism and Gaslighting Concerns: Pro-XRP lawyer John Deaton raised skepticism about Senator Elizabeth Warren’s stance on Bitcoin and questioned whether JPMorgan’s involvement in BlackRock’s Bitcoin ETF was an attempt to mislead the public or engage in gaslighting. Some community members emphasized the contradiction between JPMorgan’s actions and Dimon’s previous negative comments about cryptocurrencies.
JPMorgan’s Crypto Initiatives: Despite Dimon’s public opposition to the digital asset sector, JPMorgan recently launched its own crypto token, JPM Coin, on a private version of the Ethereum blockchain for institutional clients. The bank also introduced a blockchain-based tokenization platform, with BlackRock as one of its clients, and participated in funding rounds for Ethereum infrastructure firm Consensys.
Conclusion:
JPMorgan’s involvement as an authorized participant in BlackRock’s Bitcoin ETF has stirred controversy within the crypto community, given Jamie Dimon’s vocal criticism of cryptocurrencies. The episode underscores the ongoing tension between traditional financial institutions and the evolving crypto landscape, raising questions about the sincerity of their involvement in the industry.
