JP Morgan CEO’s sophistry: BTC has no value, but it does not prevent participation in the BTC ETF

Dimon compared BTC to a “pet stone” and believed that it lacked real value apart from being a speculative asset.

Source: Bitcoinist

Compiled by: Blockchain Knight

Recently, JPMorgan CEO Jamie Dimon once again expressed his skepticism towards BTC, the largest Crypto asset on the market, in an interview with CNBC’s Squawk Box.

A new wave of criticism has emerged despite JPMorgan’s participation in BlackRock’s BTC ETF as an authorized participant (AP).

In the interview, Dimon acknowledged the potential of blockchain technology, saying it can move money and data efficiently. However, Dimon distinguished between Crypto assets, pointing out that some Crypto assets have real uses, while other Crypto assets such as BTC do not.

Dimon compared BTC to a “pet stone” and believed that it lacked real value other than being a speculative asset.

Dimon said: “There are some Crypto assets that can do some valuable things, and there are some that can’t do anything, which I call ‘pet stones’, such as BTC.”

Dimon emphasized that certain Crypto assets can facilitate real-world applications, such as small smart contracts for buying and selling real estate or asset tokenization.

However, Dimon also pointed out the negative factors related to BTC, including the fact that BTC is used for illegal activities such as tax evasion and fraud.

Dimon cited examples of BTC being used for such purposes, involving transactions worth hundreds of millions of dollars.

Notably, JPMorgan Securities has been designated as an authorized participant for BlackRock’s proposed BTC ETF, along with Jane Street Capital.

This creates a paradoxical situation: JPMorgan CEO Dimon criticizes BTC while actively participating in BTC-related activities.

The contrasting narratives within JPMorgan suggest its internal views on digital assets are complicated. Dimon’s statement is consistent with his previous remarks, reiterating his belief that BTC lacks intrinsic value.

However, the Crypto Asset Community believes that BTC’s decentralized nature and potential as a store of value make it an attractive asset class.

Since BTC ETF trading began on January 11, the trading volume of 11 different ETFs on the market has increased significantly.

ETF experts James Seyffart and Eric Balchunas from Bloomberg pointed out that the launch of these ETFs has been a huge success, with nearly $10 billion in trading volume in just three days**.

According to Seyffart, the trading volume generated by the BTC ETFs within the first three days is a testament to their success. Collective trading volume of nearly $10 billion demonstrates investor interest and confidence in these products.

Balchunas compared the impressive trading volume of $10 billion to the performance of different ETFs launched in 2023.

Despite months of momentum, the total trading volume of the 500 ETFs launched in 2023 is only $450 million, and the best-performing ETF is only $45 million.

Balchunas said that in contrast, the trading volume of BTC ETF has exceeded the entire trading volume of 500 ETFs last year, highlighting the great interest and demand for these products.

Balchunas further explained the difficulty of generating large trading volumes for ETFs. While marketing efforts and investor inflows can influence traffic and asset growth, trading volume must develop naturally in the market.

This naturally occurring trading activity ensures the authenticity and liquidity of the ETF, enhancing its staying power and appeal to investors.

The fact that BTC ETFs have gained significant trading volume in the short term suggests they have the potential to maintain market share in the long term.