JPMorgan launches new crypto fund for wealthy investors — after Jamie Dimon called bitcoin a ‘fraud' and ‘Ponzi scheme'

Core Viewpoint - JPMorgan Chase is expanding its involvement in cryptocurrency by launching a tokenized money-market fund on the Ethereum network, despite past criticisms from CEO Jamie Dimon regarding cryptocurrencies [1][8]. Group 1: Fund Details - The new fund, named My OnChain Net Yield Fund (MONY), will initially be funded with $100 million from JPMorgan and will open to outside investors with a minimum investment requirement of $1 million for individuals and $25 million for institutions [2][1]. - The fund operates similarly to traditional money-market funds, investing in short-term debts and providing slightly higher interest than standard bank accounts [3]. Group 2: Tokenization and Blockchain - The fund's assets will be tokenized, meaning they will be converted into digital tokens on a blockchain, allowing for decentralized management without a central authority [3]. - Investors can access the fund through JPMorgan's online portal and receive digital tokens in their crypto wallets, with the option to invest using cash or USDC, a stablecoin pegged to the US dollar [4]. Group 3: Market Context and Trends - The launch follows the passage of the Genius Act, which established regulations for stablecoins and has led to increased tokenization across various asset classes [5]. - The total assets in money-market funds have risen to approximately $7.7 trillion, up from $6.9 trillion at the beginning of 2025, indicating growing popularity in this investment vehicle [8]. - The market for stablecoins has surpassed $300 billion, highlighting significant interest in tokenized funds that offer yields while remaining on the blockchain [9]. Group 4: Strategic Shift - JPMorgan's move reflects a strategic shift towards embracing digital assets, despite Dimon's previous skepticism about cryptocurrencies, as the bank aims to lead in the tokenization space [11][8]. - Other financial institutions, such as BlackRock and Goldman Sachs, are also engaging in similar tokenization efforts, indicating a broader trend within the industry [14].