Wall Street firms advise clients not to invest in cryptosystems, says one wealth manager

JPMorgan Chase and Goldman Sachs are advising clients against Bitcoin (BTC), according to a U.S. wealth manager.

Adam Pokornicky, chief operating officer of Digital Asset Investment Management (DAIM), a U.S.-registered investment adviser for digital assets, said his company nearly lost a client to bank intervention.

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In an interview with Cointelegraph, Pokornicky described his client as a lawyer and a „high net worth individual,“ adding that they have known each other for a long time. „He’s both a friend and someone I’ve worked with over the years,“ the wealth manager explained.

According to Pokornicky, his client was willing to buy a small amount of BTC for his wallet, but had a sudden change of heart after speaking with advisors at JPMorgan and Goldman Sachs. „For him, going from wanting to buy 1 Bitcoin to not being interested means he was talked into it,“ said Pokornicky, whose attempts to get more context have been unsuccessful. „I still don’t know what he was told.“

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The love-hate relationship between banks and cryptosystems. The wealth manager argued that Wall Street institutions tend to advise against crypto-currency, according to their companies‘ guidelines:

„My partner and I worked on the buyers‘ side of a hedge fund and/or trading for most of our careers and during the token sale, zcash and monero, $32 million fund raise, its launch last october, weighing the measure we have an inordinate amount of friends and colleagues on Wall Street who still work at large banks like Morgan Stanley, Goldman, JPM, Wells Fargo, Merrill/BofA who are either completely restricted from buying Bitcoin or have to go through insane compliance hoops to do so. Advisors working for the Wealth Management divisions have a HARD policy of no Bitcoin.“

JPMorgan’s public relations with cryptomontages has been complex. The bank’s CEO, Jamie Dimon, is a renowned detractor of Bitcoin who went from saying he „doesn’t give a shit about Bitcoin“ to launching JPM Coin, a digital asset inspired by a stablecoin.

Goldman Sachs entered the industry long ago; it invested in several key projects such as the Circle payment application and the cloud-based supply chain company Tradeshift.

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When asked if he finally managed to persuade his client to buy Bitcoin, Pokornicky responded:

„No, not yet. My feeling is that he will come around, most likely at higher prices. Everybody usually does eventually.“

JPMorgan and Goldman Sachs did not immediately respond to Cointelegraph’s request for comments.