If Jamie Dimon Hates It So Much, Why Is JPMorgan Buying Bitcoin In Europe?

Tyler Durden's picture

Unless you have been living under a rock for the past week, you will be well aware of JPMorgan CEO Jamie Dimon's panicked outburst with regard the 'fraud' that Bitcoin's 'tulip-like' bubble is. To paraphrase:

"It’s a fraud. It’s making stupid people, such as my daughter, feel like they’re geniuses. It’s going to get somebody killed. I’ll fire anyone who touches it."

Anecdotally, the post-Dimon collapse in crypto prices seems to confirm his view (though of course this is much more due to China concerns than a vested interest fearmonger), which makes us wonder... why is JPMorgan buying Bitcoin ETFs on European exchanges?

Nasdaq Stockholm has an actively traded Bitcoin ETN...

'Bitcoin Tracker One - SEK' is an open-end Exchange Traded Note incorporated in Sweden. The ETN is denominated in SEK and provides investors with access to the returns of the underlying asset, US Dollar per bitcoin, less investor fees.  The average USD exchange rate of bitcoin from the exchanges:- Bitfinex, Bitstamp and GDAX provides the underlying reference price which is converted into SEK.

In the last few days - as the underlying price collapsed - the ETN has remained bid, with heavy inflows, and now trades at around 20% premium to Net Asset Value...

 

And guess who has been buying?

JPMorgan Securities was the 4th biggest buyer...

h/t @IamNomad

Which suggest two scenarios... Either

i) JPMorgan is buying for its own account at Dimon-manipulated-lower prices (remember Dimon said any trader who bought Bitcoin would be fored for being "stupid"), or

 

ii) JPMorgan is buying for clients, seemingly offering no sense of fiduciary care amid Dimon's warning to the world that the cryptocurrency is a fraud (is JPMorgan Securities knowingly allowing clients to buy securities it believes are a fraud?)

Which is it Jamie?

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Yen Cross's picture

  Go smoke a cigar  and feed your throat cancer Dimon.

Looney's picture

 

Central Banks, unlike governments, always find ways to coordinate their policies. Usually, they do it in secret, but sometimes they go to great lengths to show their collusion.

China’s crackdown on Crypto-Currencies is not an isolated event. Very soon, other countries will start shutting down Crypto-Exchanges, too. Some of them will give a “legitimate” reason and others will come up with utterly ridiculous reasons or no reasons at all.

This is not just the proverbial “writing on the wall” – they ARE shutting the exchanges down!

China’s decision to give a few extra weeks to the last two exchanges is just an extension.

Yesterday’s 15% spike in BTC was not a short squeeze or a dead cat bounce – it is almost impossible to short BTC – the spike was just a display of the Crypto-Crowd’s recklessness.

Picking up pennies in front of a steamroller is never a good idea, but trying to pick up a VIRTUAL coin in front of a REAL speeding 18-wheeler is just plain dumb.  ;-)

Looney

knukles's picture

Because he doesn't know what's going on in his organization?
Too cynical?

BaBaBouy's picture

Some ELEPHANT definitely was BTFD'ing on Thurs/Fri ...

You would think Bitcoinz would be the Ideal currency for the Big INTL Drug Cartels...

You would think Most Govermints would be Very Opposed to this...

bwh1214's picture

Chris Duane and Jamie Dimon, never thought they would have the same opinion.

Video: Duane Challenge Accepted, and a Wager
MillionDollarButter's picture

Poop and Scoop

called it

Also, now we know why he'd fire anyone trading crypto.  Dimon's rule: "Dimon is the first one in and the first one out."

Gaius Frakkin' Baltar's picture

The looney goldbugs can't make up their minds. Is Bitcoin going to take over the world and usher in a cashless society? Or is it going to zero?

It depends on the week it seems.

God forbid there be an electronic money that banks have less control over.

 

Arnold's picture

The Blockchain, yes.
Bitcoin? No.

USisCorrupt's picture

They FORGOT to mention who is ONE of the Largest Investors in ETHEREUM ETH.

This MAY SHOCK many BUT it is "Drum Roll"   J.P. Morgan !

aurum4040's picture

Correct assement Arnold. As someone who originally (when -15 years ago) thought PMs were going to the moon and the market would be in a depression for quite a while after 08, I and many other people have learned not to fight the Fed. It is a losing battle. Since the EEA was announced in 02/17 the easiest trade in Crypto has been ETH. It will continue to be ETH. Just like the Fed told you to buy the DOW at 7k, the EEA which is comprised in part by Fed members, is telling you to accumulate ETH. Wait until ETH owners are paid 6% to 12% for locking up their ETH to lubricate the new financial system. That isn't my hypothesis - it is the reality being developed as we speak. Do your own DD, research Metropolis, and other scheduled ETH updates

Mr.Bigfoot's picture

"Blockchain yes, Bitcoin no"   that argument is so 2014.

News flash.   Bitcoin is THE Blockchain

buttmint's picture

...Jamie's mistresses might have a diff interpretation....

tmosley's picture

TBH we need a new nocoin whining thread.

GodSpeed_00's picture

who gives a damn if they are opposed to it, they can't stop it. Because they're smarter than you and the rest of the idiots. They'lll try to take control over it like they did by controlling most of the gold. while you sit on the sidelines like morons.

JRobby's picture

Dimon is an asshole

JP Morgan is attempting to rig the market. They will fail.

Buckaroo Banzai's picture

"Get me the trading desk, dammit. [pause] Yeah, it's me. Drop what you're doing and get your boys working on a pump-and-dump for BitCoin. I'm sick of watching internet geeks and nobodies make all the money on this stupid thing."

[voice on other end of phone patiently explaining]

"No options or futures? What the fuck kind of market is that? OK, never mind, just naked-short the shit out of it."

[more patient explaining]

"Seriously? Fuck. All right. What's the short interest right now?"

[even more patient explaining]

"WHAT THE FUCK DO YOU MEAN, NO SHORT INTEREST??"

[slams phone on hook]

"Get me Bank of China on the line."

 

highandwired's picture

Why does everyone keep saying that you "can't short" Bitcoin?  Sure you can!  You can go short BTC on a number of exchanges such as Bitfinex or Poloniex.

 

americanreality's picture

Buying/selling fees, just a way for govts to get an even larger cut of the drug action.  

FreeShitter's picture

Here's whats going to most likely happen, they will re-open the exchanges with regulation to tax bitcoin and all shit altcoins, then decentralized exchanges will thrive and this is not only for china. You cannot stop this. No matter what you all hope.

Yukon Cornholius's picture

JP Morgan issues more credit than 5x what BTC is worth. BTC is small potatoes (which is why I hodl). It is no threat to mr Damon's empire. He can issue fiat at will to buy it, like he does with silver.

Would JP fight a war over BTC? Probably not.

FreeShitter's picture

They wanted in, they created some FUD along with china. End of story. I saw the buy walls for Bitcoin at 3000, it looked like a tsnunami  of money flowing in. I stayed up all night waiting for it. The big whales were creating so much FUD, it scared all the weak hands as usual.

Yukon Cornholius's picture

They def wanted in. Why buy at 5 when you can get at 3.5. I wasn't moving one inch. This wave is going up to $10k in short order and these mopes around here will have nothing to say (or shouldn't at least.)

Jay's picture

$1.27B moved in. I think that was record trade volume. No lack of interest there.

JiminyCrickets's picture

On my exchange and others I looked at, the main buyers were all whales, was pretty clear from Order Books this was a shakedown.

Clowns on Acid's picture

True...they must control ALL .."Exchanges". I mean look at what they have done to the NYSE and Nasdaq, etc.. with "demutualization". Look at what they have done with the USD since QE (first time in US history)....

Rhetorical's picture

Any country that trys to shut down crypto risks getting buttfucked by the countries that dont and arent afraid to take adv. of cryptos innovations. . But ya states who benefit from the current status quo do not like it at least the ones that are deflationary annonymous and not under their control. If  you look at what happened to NEO and QTUM its proof positive of the dangers of being bound to one single state as far as crypto goes. Even if those coins and the teams behind them were and still are solid ideas and designs.

Look at what Omisego is trying to do as far as electronic payments go. Im balls deep no condom in this coin full disc. 

Plus the trend is towards even more decentralized exchanges and more annonymous coins Look at Kyber (KNC)for the latter and Monero (XMR) for the former. Proof that the govts will try and coop is already there if you look at Zcash which says its annonymous but has built in backdoors and is rumored to have been part of how the FEDS shutdown Alphabay due to  its traceability. But unfourtanately for govts at present the crypto community is fairly tech savvy and responsive to their actions at least for now. 

The mood in that community at least as Ive seen it is "fuck you" you can  fight it but you've already lost and are wasting our time yours included.

Also lambos 

JiminyCrickets's picture

China is not shutting down Bitcoin exchanges, they are regulating them and looking to indict all the crooked Ethereum ICOs while they are at it.

TVP's picture

Oh, look, another nonsensical Zerohedge comment with no basis in reality.  Shocking.  

https://www.coindesk.com/china-shmyna-bitcoin-trading-way-distributed-no...

"Remember also, this time around there hasn't been any formal guidance from government – and it appears local exchanges Huobi and OKCoin will continue letting users trade between cryptocurrencies. In short, this is far from a blanket ban."

Japan has made bitcoin LEGAL TENDER. Vietnam too. A handful of other countries are about to do the same, including Russia, which was once the single most hostile country toward bitcoin.  If one country bans the most significant technological breakthrough since agriculture, users and exchanges will move to a more intelligent nation-state.  Go to coin.dance and check out volume charts - soaring in almost every big country on the planet.  

One last thing.  SUCK ONE, DIMON!

BallAndChained's picture

Legal does not mean Legal Tender.

https://spectrum.ieee.org/tech-talk/computing/it/japan-takes-lead-in-leg...

"Nevertheless, the new law falls short of declaring these volatile currencies to be legal tender."

Legal means they don't have to pay tax on it.

If it was Legal Tender, all merchants would be required by law to accept Bitcon.

BallAndChained's picture

Not that people actually use Bitcon to buy anything with the large transaction fee and slow confirmation time.

It is all used for speculation not a currency. Calling them currency is a big lie.

 

kochevnik's picture

Bitcoin does not need exchanges. You failed to make your point

Arnold's picture

To convert from crypto to other digital or physical currency, they do.
And speculation on Bitcoin does not happen in your wallet, either.

The Wizard's picture

The financial wizardry is accomplished being near the top of the totem pole. Manipulation is the name of their game and the only way to win is make the same bets they make. The problem is we don't know what is going on behind The Wizard's curtain and sometimes luck will prevail.

How do the financial analysts and economists factor the above statement into their models.

Spaced Out's picture

"Very soon, other countries will start shutting down Crypto-Exchanges, too."

Where can I get me one of them there crystal balls bubba?

FreeShitter's picture

On the shelf right next to the glass eyeballs - Roy munson.

HRClinton's picture

FYI... repost 

http://www.zerohedge.com/news/2017-09-13/mike-krieger-asks-which-fraudulent-bitcoin-or-jp-morgan#comments

HRClinton  bugs_ Sep 13, 2017 8:02 PM

As I wrote earlier today, Demon and his miscreant ilk are absolutely horrified of BTC and Gold Bullion working in tandem, like the Dynamic Duo of Batman & Robin.

It is the COMBINATION of GOLD + CRYPTO that terrifies them to their very Demonic souls.

As they should: Gold as a Universal Store of Value, and Crypto as the Medium of Exchange. Both are decentralized and in the hands of the owner.  Real Money for the 21st Century, outside of (((Global-Lust Bankster))) control.

"The horror!  The financial Shoa!  Unforgivable!"  

The rent-seeking parasite is merely trying to freeze/stall the Markets, to buy themselves time and play Catch-up. Don't be a Goyim Putz, a Schmuck, a Schlemiel/Schlemazel. Don't fall for his Sith mind trick. 

38BWD22's picture

Bitcoin and gold are a powerful combination to hedge one's other investments, especially vs. liars and .gov.

I like 1% in BTC, and 10% in gold. <--- depending on preferences and circumstances.

Douglas1949's picture

More like 50% in bitcoin, 20% in silver, 10% gold and the rest in food.  DB

BabaLooey's picture

Fuck Off Dimon, you piece of day old dog shit.

 

GreatUncle's picture

If you can't destroy it they must control it.

Wait until they start offering bitcoin derivatives.