JPMorgan to Launch Loans Backed by Crypto ETFs, Starting with BlackRock’s Bitcoin Fund
JPMorgan Chase, one of the world’s leading financial institutions, is preparing to offer loans secured by cryptocurrency exchange-traded funds (ETFs), beginning with BlackRock’s Bitcoin ETF, IBIT.
According to Bloomberg, the bank will soon introduce financing options that use crypto ETFs as collateral—an important step in traditional finance’s ongoing integration of digital assets. Initially, JPMorgan will support BlackRock’s IBIT as the first crypto ETF in this lending program.
In addition to this move, the bank will begin factoring clients’ crypto assets into assessments of their net worth and liquidity. This means that digital assets like Bitcoin may now be treated similarly to real estate, stocks, and precious metals when determining borrowing power.
This initiative comes shortly after the Moscow Exchange launched Bitcoin futures tied to the IBIT ETF, although access is currently limited to accredited investors.
BlackRock’s IBIT has quickly gained traction among institutional investors. Data from SoSoValue shows it now holds $70.16 billion in net assets and recently completed a 31-day inflow streak that ended on May 30.
Due to growing interest, Bloomberg analyst Eric Balchunas has projected that IBIT’s Bitcoin holdings could exceed the 1.12 million BTC believed to be owned by Bitcoin creator Satoshi Nakamoto by next year. In a post on X, Balchunas noted IBIT ranks 23rd among the top 25 ETFs by assets under management, despite being significantly newer than the others.
Interestingly, JPMorgan’s pivot to crypto-backed lending comes even as CEO Jamie Dimon remains publicly skeptical of Bitcoin. Dimon recently stated the U.S. should prioritize stockpiling resources like rare earth metals and ammunition over acquiring BTC.
