Jamie Dimon Clears Bitcoin for JPMorgan Clients: ‘I Defend Your Right to Smoke’

What do Ponzi schemes and smoking have in common? Apparently, they’re just as dangerous as investing in Bitcoin, according to JPMorgan CEO Jamie Dimon.

Still, the notoriously blunt crypto skeptic made a stunning reversal at the company’s investor day this week, saying clients of the Wall Street bank will be able to purchase digital assets. JPMorgan was one of the last major financial firms holding out, and the move puts it on par with rivals like Morgan Stanley, which allowed wealth managers to pitch Bitcoin ETFs to clients in August. Goldman Sachs invested some $400 million in similar funds that same month. 

“When I look at the bitcoin universe, the leverage in the system, the misuse of the system … the sex trafficking, the terrorism, I am not a fan of it,” he said, adding the firm won’t custody the assets, but will put them in statements for clients. 

Don’t Take Pet Rocks for Granite

The about-face is a milestone for the bitcoin industry, which Dimon has largely lampooned. He dismissed bitcoin as “worthless” in 2021 when valuations were hitting record highs, per CNBC. The Queens, New York, native has expressed similar sentiments on some of the world’s largest stages:

• “The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance,” he told lawmakers during a Senate hearing in 2023. “If I was the government, I’d close it down.”
• “Bitcoin does nothing. I call it the pet rock,” Dimon said at the 2024 World Economic Forum in Davos. “This is the last time I’m talking about this with CNBC, so help me God.”

All of that criticism has made the bank’s announcements that much more surprising, said Damon Polistina, director of research at Eaglebrook. “Jamie Dimon has been a vocal bitcoin detractor. This move serves as a reminder that the institutional adoption of bitcoin is further along than most people realize.”

Who’s Got a Light? JPMorgan isn’t the only big brokerage caving on crypto. Charles Schwab is expected to open up bitcoin trading within the year, according to CEO Rick Wurster. He cited a “changing regulatory environment” in an update with analysts in April, but the company still listed stark warnings about the asset class on its website.

Advisors, and their clients, are certainly interested. More than half of advisors are planning to increase crypto investments this year, according to a January survey from Bitwise. Some 22% of advisors allocated to crypto in client accounts last year, which nearly doubled the rate from 2023 and marked an all-time high. 

“I don’t think you should smoke,” Dimon told the crowd. “I defend your right to smoke. I defend your right to buy Bitcoin.”