Major Finance Firms in the US Dip Their Toes in Cryptocurrencies

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Cryptocurrency investments are and always will remain a risky thing to tiptoe into because of the unpredictable market volatility. Despite the risk, the profit potential is just as high as the potential for loss which is the basis of what many people make their investments.

Since it is such an uncertain market and is posing such a dilemma for investors. Leading financial firms in the US are not making any moves in the cryptocurrency market. Instead, they are just observing from the sidelines.

On the other hand, many financial heavyweights are showing an increasing interest in the volatile work of cryptocurrency assets. US heavyweight firm JPMorgan is reported to have said that it will allow investments in bitcoin funds for its wealthier clients. Another major industry named Goldman Sachs developed a team which is dedicated to cryptocurrency trading.

JPMorgan’s chief executive Jamie Dimon says that he would personally advise people to stay away from cryptocurrency investments. However, he further comments that just because he is advising against it, it doesn’t mean that the bank’s clients aren’t interested.

PMorgan is the biggest bank in the US in terms of assets. Dimon reported that the bank is currently working on developing a plan through which it can help its clients invest in cryptocurrencies.

The latest jump in cryptocurrency prices at the end of 2020 and the start of 2021 brought forward an influx of people interested in investing in cryptocurrencies. Previously, this was an area where the most prominent investors were computer geeks.

A major name in the US financial market, State Street, announced that it is working on creating a digital finance division on Thursday. On Wednesday, a vow was made by the head of Interactive Brokers, an online trading firm. They vowed that they will set up the online cryptocurrency trading option on their platform by the end of this year’s summer.

At the moment, Interactive Brokers does not provide bitcoin trading to its customers via its platform. Which is similar to the conditions that its rivals Charles Schwab and Fidelity offer. However, the trading firm does allow its clients to invest in other cryptocurrencies or bitcoin futures.

The interest of US financial heavyweights can potentially make cryptocurrency investments expand to a wider range of investors.