JPMorgan Chase is making its boldest move yet into the crypto space, allowing clients to use shares of Bitcoin exchange-traded funds (ETFs) as collateral for loans—a first for the $3.7 trillion banking giant. According to Bloomberg, the initiative will begin with BlackRock’s IBIT fund, the largest player in the rapidly growing Bitcoin ETF market.
The bank will also begin factoring crypto ETF holdings into clients’ net-worth assessments, marking a significant change from its previous case-by-case approach to crypto-backed lending.
BlackRock’s IBIT, which holds roughly $67 billion in Bitcoin, accounts for more than half of the $125 billion spot Bitcoin ETF market. Its massive holdings have even prompted speculation that it could surpass Satoshi Nakamoto as the largest Bitcoin holder.
The move represents a dramatic turnaround for JPMorgan, whose CEO Jamie Dimon has long been one of Wall Street’s most vocal crypto skeptics. Dimon has publicly slammed Bitcoin in the past, calling it a “fraud,” “worthless,” and even suggesting in 2023 that the government should shut it down.
While the bank has explored blockchain technologies and asset tokenization, it had largely distanced itself from Bitcoin—until recently. In a more measured tone last year, Dimon acknowledged the right of individuals to invest in crypto, likening it to the freedom to buy a cigarette.
JPMorgan’s policy shift reflects the broader trend of traditional financial institutions warming to digital assets amid a regulatory thaw in the U.S., particularly under President Donald Trump’s administration. Industry giants like Charles Schwab and Morgan Stanley have also entered the crypto space.
Fueling this shift is the explosive success of Bitcoin ETFs, especially BlackRock’s IBIT, which has quickly become one of the 25 largest ETFs overall just 16 months after launch. Collectively, Bitcoin ETFs now hold over 1.1 million BTC valued at approximately $125 billion.
According to Bloomberg, JPMorgan plans to eventually extend the lending program to include other Bitcoin ETFs as collateral.
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