JPMorgan CEO Faces Backlash Over Bitcoin ETF Involvement Amidst Anti-Crypto Remarks

ProXRP attorney John Deaton questioned whether BlackRock’s designation as an authorised participant was an attempt to mislead the public or gaslight.

JPMorgan CEO Jamie Dimon is being criticised by the crypto community on X (formerly Twitter) after being named as an authorised participant (AP) by BlackRock, which withdrew its updated Form S-1.

Commenting on BlackRock’s amendment, Bloomberg ETF analyst Eric Balchunas said: “BlackRock just dropped their updated S-1 and they are naming the APs: Jane Street and JPMorgan (which is kind of ironic),” possibly referring to the investment bank’s choice of AP.

An authorised participant is an organisation with the right to create and redeem shares of an exchange-traded fund (ETF).

BlackRock’s updated filing names Jane Street and JPMorgan Securities as “authorised participants” in its proposed spot bitcoin ETF application. However, JPMorgan CEO Jamie Dimon hasn’t always been supportive of bitcoin.

In a Senate Banking Committee hearing on the oversight of Wall Street firms on 6 December, JPMorgan Chase Chairman and CEO Jamie Dimon told several US lawmakers that if he had the authority in the government, he would try to shut down crypto, claiming that bitcoin is “not a cryptocurrency”.

 

Crypto experts were quick to point out the hypocrisy of JPMorgan as an authorised participant in BlackRock’s bitcoin ETF. “Maybe money laundering, tax evasion, criminal involvement and drug trafficking is their business too,” said crypto enthusiast @silzimzil on X.

“If BlackRock wants to do all that, fine, but how can JP Morgan do all that after telling Congress and Elizabeth Warren that’s what it’s used for?” asked another crypto user, @sunny051488, on X.

XRP lawyer John Deaton also expressed scepticism about Senator Elizabeth Warren’s stance on bitcoin, pointing out that Jamie Dimon’s JPMorgan is involved with bitcoin despite “negative associations with criminals”. Deaton questioned whether this was an attempt to mislead the public or engage in gaslighting.

Despite being “deeply opposed” to the digital asset sector, JPMorgan recently launched its crypto token – JPM Coin – on a private version of the Ethereum blockchain for its institutional client base.

The bank also launched a blockchain-based tokenisation platform in October, with BlackRock as one of its clients. It also contributed to a $65m funding round for Ethereum infrastructure company Consensys in April 2021.

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