Banking giant JPMorgan believes that more payment companies will allow their customers to buy Bitcoin (BTC) through their apps, similar to Square's Cash App.
In a research note Tuesday, JPMorgan strategists led by Nikolaos Panigirtzoglou wrote that Square's Cash app, which added bitcoin trading in 2018, surpassed the Grayscale Bitcoin Trust as a vehicle for Bitcoin purchases by American millennials. in the 2nd trimester. Given the popularity of the app, JPMorgan strategists believe that "other payment companies will follow to facilitate bitcoin investments or the risks of being left behind."
In fact, rumors say that payment giants PayPal and Venmo are working to offer cryptocurrency buying and selling services to their millions of users. PayPal has separately disclosed that it is developing features for cryptocurrency trading.
Square's Cash App facilitated $ 858 million in bitcoin purchases in the second quarter, while Grayscale’s Bitcoin Trust facilitated $ 750 million in bitcoin purchases in the same quarter. "We believe that millennials, or the youngest of the US retail investor universe, have used the Cash App as an alternative vehicle to the Grayscale Bitcoin Trust to increase their bitcoin holdings," said strategists at JPMorgan.
Although Square has not yet released figures for the third quarter, analysts said that assuming a similar demand of $ 700 million in Grayscale Bitcoin Trust implies that American millennials bought the equivalent of $ 1.4 billion in bitcoin in the quarter.