JPMorgan Greenlights Bitcoin ETFs for Global Loan Collateral
More financial institutions are increasingly integrating bitcoin into their services—even JPMorgan Chase & Co., historically one of the most cautious on crypto, is adapting. The bank is preparing to allow both trading and wealth-management clients to use cryptocurrency exchange-traded funds (ETFs) as collateral for loans, Bloomberg reported, citing people familiar with the matter. The change will begin with Blackrock’s Ishares Bitcoin Trust (IBIT) and marks a significant expansion of the bank’s existing collateral policies.
In some cases, JPMorgan will also take clients’ crypto holdings into account when assessing overall net worth and liquid assets, treating them similarly to stocks, vehicles, or artwork. These changes will apply globally and span all levels of wealth, from retail customers to high-net-worth individuals. The adjustments reflect a broader institutional response to growing client demand and a more favorable regulatory environment under the Trump administration. Until now, the bank has allowed the use of crypto ETFs as collateral only on a limited, case-by-case basis. The people added that other cryptocurrency ETFs are expected to be included following the change.
The move also mirrors efforts by other large banks, including Morgan Stanley, which is developing crypto trading capabilities through its E*Trade platform.
JPMorgan Chief Executive Jamie Dimon has consistently expressed his disapproval of cryptocurrencies. At the firm’s investor day in May, he reiterated, “I’m not a fan” of bitcoin. He has previously called it “a fraud” and compared it to “a pet rock.” Still, Dimon acknowledged client demand, stating: “I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy bitcoin, go at it.” Dimon also recently confirmed that JPMorgan will allow clients to buy bitcoin despite his opposition. He also said that the U.S. government should not accumulate bitcoin as a reserve asset, stating: “We shouldn’t be stockpiling bitcoin. We should be stockpiling guns, bullets, tanks, planes, drones—you know, rare earths.”
