[Bitcoin Now] Rebounds to 63 Million Won Range... JP Morgan Finally Launches Coin Fund

Shift to Negative Stance... Bitcoin Active Fund Launch Announced
Suspicion of Market Manipulation Amid Tesla's Large Bitcoin Sell-Off

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[Asia Economy Reporter Gong Byung-sun] Bitcoin, the leading cryptocurrency, slightly rebounded to the 63 million KRW range after JP Morgan, a major U.S. investment bank that had been skeptical about it, decided to launch a related fund. Meanwhile, criticism arose that Tesla’s sale of its Bitcoin holdings to realize capital gains was tantamount to market manipulation.

According to the domestic cryptocurrency exchange Upbit, as of 2:19 PM on the 27th, Bitcoin was priced at 63.99 million KRW, down 0.33% compared to the previous day. Although it had dropped to 54.96 million KRW on the 23rd, it rebounded to 64.88 million KRW at 9:16 AM on the same day.

The news of JP Morgan’s entry into the cryptocurrency market acted as a positive factor. On the 26th (local time), cryptocurrency-focused foreign media CoinDesk reported that JP Morgan plans to launch a Bitcoin fund this summer. The fund will be operated as an active fund. Unlike index equity funds that track specific indices, an active fund is a product where the fund manager actively participates in management to achieve returns above the market average. The fund’s operation will be handled by New York Digital Investment Group (NYDIG), a cryptocurrency-specialized investment firm.

This decision by JP Morgan completely reverses its previous stance. While major Wall Street financial firms such as Morgan Stanley, Goldman Sachs, and BlackRock have been entering the cryptocurrency market, JP Morgan had been pessimistic about Bitcoin’s future. It expressed concerns that if Bitcoin failed to find upward momentum during this adjustment period, it could fall into a long-term slump. On February 16, JP Morgan warned in a report that Bitcoin would not be able to maintain its then price of $49,000 (approximately 54.47 million KRW) due to volatility.

Meanwhile, Tesla sold part of its Bitcoin holdings. According to U.S. economic media CNBC on the 26th, Tesla announced in its first-quarter earnings report that it sold about $272 million worth of Bitcoin, realizing a capital gain of $110 million. On February 8, Tesla had disclosed the purchase of $1.5 billion worth of Bitcoin. Zachary Kirkhorn, Tesla’s Chief Financial Officer (CFO), described Bitcoin as “an investment vehicle that can generate returns by investing some surplus cash” and said, “Buying Bitcoin was a good decision.”

However, Tesla’s decision drew criticism. Elon Musk, Tesla’s Chief Executive Officer (CEO), who had been encouraging the purchase of Bitcoin and Dogecoin, was accused of market manipulation. On the 26th, Dave Portnoy, CEO of the sports gambling site Barstool Sports, criticized on Twitter, saying, “CEO Musk pumped up Bitcoin and then dumped it for capital gains.” As criticism poured in from communities, Musk explained on Twitter, “Tesla sold 10% of its Bitcoin holdings to demonstrate Bitcoin’s liquidity,” adding, “The Bitcoin I personally hold remains unchanged.”

This content was produced with the assistance of AI translation services.