September 13, 2017, in retrospect, was a very iconic date, especially in light of JP Morgan's praise for Bitcoin yesterday. JP Morgan's latest statement that Bitcoin noted that "longevity as an asset class" was completely contradictory to that recorded on the aforementioned date, one day when Jamie Dimon said he would "fire anyone in a second "who would be found trading Bitcoin .

Times have changed since, but early signs of a softening of JP Morgan were seen last year when it was revealed that the investment bank was about to enter crypto-space with its own coin. digital.

Although it is an equivalent to the US dollar and roughly centralized, unlike   Bitcoin  , the community of use of blockchain technology was seen as a sign of increased interest in the most the world's great crypto asset.

The Bitcoin has performed admirably since the market crash of March 13. The asset experienced the biggest drop in liquidity compared to traditional stocks, but after the disruption,   Bitcoin   was the first asset class to recover almost 100% of its losses.

To be fair, it will be difficult for any organization to criticize Bitcoin at this time, unless you are a representative of Goldman Sachs. This is where improving JP Morgan's position on Bitcoin might start to make more sense.

JP Morgan v. Goldman Sachs, not JP Morgan v. Bitcoin ?

JP Morgan and Goldman Sachs are clearly two of the largest investment banks in the world. Since the 2008 recession, Goldman Sachs has become the world leader in terms of generating income from asset and wealth management and investing and lending. Its unrivaled strength is also demonstrated by its high advisory and underwriting costs due to the company's strong presence in the M&A advisory sector.

On the contrary, JP Morgan has forged its own niche over the years in the global borrowing market and continues to follow Goldman Sachs.

Source: Forbes

Reports suggest that even though the two investment companies are neck and neck, Goldman Sachs has outperformed JP Morgan 3 times in the past 5 years. In terms of average revenue growth too, over the past 4 years, from 2016 to 2019, Goldman Sachs was slightly ahead with an annual rate of 4.5%, compared to 3.7% for JP Morgan.

Now, even if JP Morgan may have managed to increase its revenues in 2019, it may be planning to increase the margin in the long term with Bitcoin .

Bitcoin : an ace in hand for JP Morgan against Goldman Sachs?

Let's analyze some key recent events.

On May 28, Goldman Sachs hit the headlines after the investment company bluntly called Bitcoin and called it "not an asset class." In its presentation, the firm said that the digital asset "is not suitable for investment" and that it "does not show evidence of coverage against inflation".

The news exploded on various social media platforms and within a day Goldman Sachs had been identified as an “Anti- Bitcoin ” institution.

On the other hand, JP Morgan progressed in the other directions. Two weeks before May 28, it was reported that JP Morgan had added its first crypto-exchange as a client. The exchange was none other than Coinbase , and it was also reported that Dimon had arranged several secret meetings with Brian Armstrong.

Besides Coinbase , JP Morgan also signed the rival Bitcoin exchange Gemini after a long consultation and suddenly the institution had two of America's largest Bitcoin exchange accounts in the industry.

Let's look at the larger picture for a moment.

In light of Goldman Sachs' negative image in the crypto-community, JP Morgan is currently meeting “Pro- Bitcoin ”. From a speculative point of view, if JP Morgan closely monitors Bitcoin , he will no doubt observe that institutional clients are slowly entering the digital asset space. The record of grayscale accumulation in Bitcoin for 2020 will highlight this fact, as their services are exclusively for institutions and accredited customers.

We can therefore hypothesize that JP Morgan, currently, is looking to the future, a point where their clients could ask the investment firm for the allocation of Bitcoin in their portfolio. If they had a solid footing in the Bitcoin derivatives trade at that time, they would be the first choice for any institutional customer in the industry.

However, this is easier said than done, and the above situation may or may not occur in the next few years. However, if so, JP Morgan could prepare for a race, in which finishing first could generate endless income opportunities in the long run.