JPMorgan Chase, the largest U.S. bank by assets, is preparing to implement a new policy allowing clients to use Bitcoin ETFs and other crypto-related exchange-traded funds as collateral for loans. The move marks a notable shift in how traditional financial institutions approach digital assets.
According to sources cited by Bloomberg, JPMorgan’s initiative is part of a broader plan to expand crypto asset utility for select clients in its trading and wealth-management divisions.
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The bank will begin by accepting crypto ETFs, starting with BlackRockโs iShares Bitcoin Trust (IBIT), which recently surpassed $70 billion in assets under management.
JPMorgan Aligns Lending Strategy with Bitcoin ETF Momentum
This policy update aligns with a wider regulatory shift under the current U.S. administration. Since spot Bitcoin ETFs were approved in January 2024, they have quickly grown to manage over $128 billion in assets, becoming one of the most successful ETF launches in U.S. history.
Although JPMorgan Chase does not yet offer custody or execution services for crypto ETFs, the bankโs entry into crypto-backed lending reflects growing institutional demand for digital asset exposure.
CEO Jamie Dimon, a long-time Bitcoin skeptic, recently acknowledged that JPMorgan Chase will allow clients to purchase Bitcoin. The move has been viewed as another indication of the bankโs evolving stance.
The changes will be rolled out globally, covering all wealth-management clients, from retail investors to high-net-worth individuals.
While custody remains off-limits, JPMorganโs shift toward accepting Bitcoin ETF collateral represents a significant step in merging traditional finance with the growing digital asset economy.
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People Also Ask:
A Bitcoin ETF (Exchange-Traded Fund) is a type of investment fund that tracks the price of Bitcoin and trades on traditional stock exchanges, like the NYSE or Nasdaq.
Bitcoin ETFs are generally safer than buying Bitcoin directly for most traditional investors, but they still carry risks
As of now, BlackRockโs iShares Bitcoin Trust (IBIT) holds the most Bitcoin among all ETFs.
