JPMorgan to Initiate Bitcoin-Tied Loans Based on BlackRock ETF
Cryptocurrency Collateral Now Accepted by JPMorgan Chase
Hold your steals, crypto enthusiasts! The country's largest bank, JPMorgan Chase, is taking a giant leap into the world of cryptocurrency by allowing customers to use cryptocurrency-backed assets for loan collateral. Let's dive in!
First off, we've got the BlackRock iShares Bitcoin Trust ETF in JPMorgan's crosshairs, ready to start offering loans backed by crypto exchange-traded funds (ETFs). And guess who's breaking the ice? You got it—the BlackRock Bitcoin ETF! This move is another big stride for a major U.S. bank diving headfirst into crypto waters[1][2].
But waiting, there's more! JPMorgan will also factor in clients' crypto holdings during wealth and asset evaluations in some cases. Now, your Bitcoin stash will be treated just like your stocks, vehicles, or priceless art pieces when assessing your loan eligibility[2].
JPmorgan has been betting on blockchain technology for quite some time, primarily for transactions and teaming up with big players like Coinbase. However, CEO Jamie Dimon—yeah, the bitcoin skeptic—still allowed the bank to offer crypto to clients despite his "not a fan" attitude towards Bitcoin. But hey, business is business, right?[3]
Here's the twist: while JPMorgan was previously allowing only selected clients to use cryptocurrency ETFs as collateral on an individual basis, the new policy paves the way for more ETFs to join the party, gradually[3]. Meanwhile, other giants, such as Morgan Stanley, are rumored to be entering the crypto ring, planning to bring crypto trading to their E*Trade platform[4].
With the latest news, spot Bitcoin ETFs in the U.S. have been on a roll, managing over $128 billion in total assets[1]. And as you might've heard, Bitcoin touched a new all-time high of $111,980 in May 2025—right after Donald Trump's presidential victory in November 2024[1]. The crypto industry was one great supporter of Trump's election campaign, contributing generously to crypto-friendly candidates[5]. Now, Trump's administration has been actively supporting the crypto sector, encouraging policies that boost the industry's growth[5].
So, will you dig into the crypto wave as well? Start making that dough roll, crypto belta!
Aside from this, JPMorgan CEO Jamie Dimon sounded the alarm over the U.S. Bitcoin reserve in an investor event in May, expressing his apprehensions towards Bitcoin[5]. If you're keen to find out more, check out our article on that very topic!
Sources:
- CoinDesk
- Bloomberg
- Reuters
- Forbes
- Fortune
- JPMorgan's new crypto policy may soon include more ETFs, possibly paving the way for Morgan Stanley to enter the cryptocurrency sector and bring crypto trading to their E*Trade platform.
- Increasingly, cryptocurrency-backed assets are being used not only for loans but also in wealth and asset evaluations, treating Bitcoin holdings similar to stocks, vehicles, or art pieces.
- With the BlackRock Bitcoin ETF now eligible for loan collateral, JPMorgan is opening the door to various sports enthusiasts who can leverage their crypto assets for finance, perhaps increasing their chances to own the latest sports gear or even purchase tickets for exclusive events.
