Prices for bitcoin and other cryptocurrencies, such as XRP which is headed by competitor cryptocurrency Solana, have risen to levels not seen since early 2022 this year.
This month, the price of bitcoin has surpassed $45,000 per coin, rising as the excitement about a BlackRock game-changer increases. However, a renowned trader is concerned that the world’s largest asset manager, worth $10 trillion, might unintentionally “destroy” bitcoin.
Along with the unexpected prediction that Donald Trump would spark a bitcoin price explosion in 2024, Bitwise, a San Francisco-based cryptocurrency asset manager, has now predicted that Wall Street behemoth JPMorgan will make a significant move to increase tokenized real-world assets to $16 trillion by 2030 of the following year.
According to the Bitwise team, which is managed by chief executive Hunter Horsley, launching a tokenized fund in 2024 would enable JPMorgan to capitalize on the advantages that on-chain assets may offer while entering an industry that is seeing explosive growth.
For years, [JPMorgan has] been investigating blockchain technology. Most recently, the avalanche blockchain was used to test tokenized portfolios. They were able to automate a large number of the phases in the portfolio management process, such as rebalancing, subscriptions, and redemptions, due to those tests.
According to a forecast from the Global Financial Markets Association cited in Bitwise’s study, by 2030, the value of real-world assets tokenized on blockchains would increase from $5.5 billion to $16 trillion.
BlackRock used JPMorgan’s blockchain-based collateral settlement system earlier this year as part of a plan that the company’s CEO claims would bring in the next generation of investors. This move made BlackRock the first major Wall Street player.
Though JPMorgan has been working on its Onyx blockchain technology and introduced JPMcoin, a corporate stablecoin, in 2017, Chief Executive Jamie Dimon recently stated before the Senate Financial Services Committee that he would “close [cryptocurrencies] down” if he were the government.
When asked about the global adoption of cryptocurrency, Dimon stated that he has always been adamantly against it, bitcoin, and other such technologies.
