Bitcoin
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BTC · 196w

JP Morgan buys bitcoin after CEO calls it a fraud.

JP Morgan CEO Jamie Dimon made headlines last week for his harsh words on cryptocurrencies, and he saved special vitriol for bitcoin in particular. Of the largest digital currency in the world, the banking boss said the entire enterprise was a "fraud" and suggested he would fire any employee who was caught trading a digital currency because that employee would be "stupid" for doing so. (See more: Jamie Dimon Calls Bitcoin a 'Fraud.')

Now, Bitcoin.com reveals that Dimon's bankers have been caught doing exactly what he said they should not do: JP Morgan reportedly bought up XBT shares for exchange-traded notes that track the price of bitcoin.

JP Morgan and Morgan Stanley Buy Bitcoin ETNs

Reports suggest that both JP Morgan and Morgan Stanley have recently bought up XBT note shares. The information comes via public records of Nordnet trading logs, which indicate that Morgan Stanley bought about 3 million euro worth of the shares.

JP Morgan waited until China's regulatory advance against bitcoin and Dimon's own harsh words to find a time at which the price of bitcoin dipped before buying XBT shares on September 15. According to Bitcoin.com, JP Morgan's team of buyers picked up the most XBT shares of all of the big banks included in the list of purchasers.

Bitcoin ETNs have become a popular means of investing in the cryptocurrency among mainstream investors and large-scale financial firms looking to add exposure in the area. Bitcoin-tracking ETNs follow bitcoin price movements as compared with major currencies like the euro and the U.S. dollar. Generally, bitcoin ETNs have provided exceptionally strong results so far in 2017, which isn't surprising, considering the rapid growth of the currency itself over the course of the year.

JP Morgan Also Involved in Blockchcain

Dimon's firm has gone beyond buying up bitcoin notes and is also involved in the recent uptick in blockchain interest increasingly common amongst ...

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