JP Morgan, one of the largest banks in the world, believes that there will be more and more payment companies where customers can buy Bitcoin
(BTC) through their apps. They compare it to the Cash App of Square.
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Bitcoin via banks
This conclusion comes from a research paper that a number of strategists from the bank wrote. Led by Nikolaos Panigirtzoglou, they claim that the Cash App of Square has overtaken the Grayscale Bitcoin Trust. It has become the way to purchase Bitcoin as an American millennial.
It has been possible to buy Ethereum Code from the app since 2018. Since its popularity is huge, the bankers assume that „other payment companies will follow suit by facilitating Bitcoin investments for customers“. And even better: „Otherwise, they run the risk of lagging behind“.
Paypal, Venmo and VISA
It is well known that payment giants PayPal and Venmo are in the process of offering similar services to their millions of users. VISA is also working on an ‚agnostic digital currency‘ platform. It seems very unlikely that they will exclude Bitcoin.
„We believe that millennials (…) have used the Cash App as an alternative to the Grayscale Bitcoin Trust to add Bitcoin to their holdings.
The Cash App facilitated $858 million of Bitcoin purchases in the second quarter of this year. Grayscale’s Bitcoin Trust grew $750 million in the same quarter.
Yesterday, the asset manager released the third quarter figures. It turned out that their total products have increased by more than $1 billion. Of this, $719 million is attributable to their Bitcoin Trust (GBTC). Square has yet to reveal the third quarter figures.
JPMorgan strategists have also noted the recent purchase of $50 million of Bitcoin from Square. They see it as a „strong vote of confidence“ for the future of the cryptocurrency.
Although the payment company’s investment is smaller than MicroStrategy’s $425 million stake, this is „probably the beginning,“ said the bankers. They also mention that derivatives are on the rise. Futures and options are under increasing demand from both retail and institutional investors.
All in all, it can be said that the bankers are following the industry very closely. They even see it as a threat to payment processors, because otherwise they will „lag behind“. Who would have thought that 12 years ago?