JPMorgan Chase & Co. is ready to support cryptocurrencies, such as bitcoin (EXANTE: Bitcoin), only if there is enough demand from clients, Co-President and Chief Operating Officer of JPMorgan, Daniel Pinto, said in an interview with CNBC.
Pinto says the bank might get involved into the cryptocurrency space if over time "an asset class develops that is going to be used by different asset managers and investors."
"The demand from clients is not there yet, but I am sure it will be at some point," Pinto added.
CNBC reporter, Hugh Son, claims JPMorgan has a semi-annual town hall meeting last month, where the bank "had to grapple with demand coming within from their own traders" who were showing high interest in the cryptocurrency.
In January this year, the bank's analysts John Normand and Federico Manicardi said in a note to clients that bitcoin's ogten sell-offs confirm that the largest cryptocurrency by market capitalization is rather a cyclical asset than a hedge tool for portfolio diversification.
The analysts say bitcoin is the "least reliable hedge" during a market turbulence. They also note bitcoin's upcoming activity will not play in favor of the cryptocurrency's status as a defensive asset.
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