JPMorgan Breaks the Vault: Bitcoin ETFs Now Accepted as Collateral in Landmark Move

Wall Street's trillion-dollar vault just cracked open for crypto—with a twist of irony. JPMorgan Chase, once Bitcoin's loudest skeptic, now greenlights crypto ETF collateral. Is this the Trojan horse for institutional BTC adoption?

Subheader: From Jamie Dimon's 'Fraud' to JPM's FOMO

The same bank that called Bitcoin a 'pet rock' in 2022 now quietly pivots to embrace its financial utility. No press releases, no confetti—just updated risk management docs allowing spot Bitcoin ETFs as loan collateral. Classic Wall Street: hate the asset class until you can repo it.

Subheader: The Collateral Domino Effect

One prime broker accepting crypto-backed loans could trigger chain reaction. Hedge funds now park ETF shares instead of Treasuries. Family offices leverage BTC exposure without selling. The plumbing of traditional finance just got a crypto upgrade—whether regulators like it or not.

Closing hook: Next stop? Maybe those 'worthless' tokens will start clearing at DTCC. Just don't expect the banks to admit they were wrong—this is finance, where principles always yield to profits.

JPMorgan to accept crypto ETFs

According to a 4th of June Bloomberg report, the bank will launch the offering in the coming weeks.

It will start with BlackRock’s iShares Bitcoin Trust, the most significant U.S. spot Bitcoin [BTC] ETF, which is currently holding over $70 billion in net assets.

While JPMorgan previously handled such arrangements selectively, the new approach marks a broader shift toward integrating crypto into traditional finance.

The bank will also factor crypto holdings into clients’ overall net worth and liquidity assessments when determining borrowing limits.

Banks’ other crypto strides

In fact, the banking giant recently partnered with Circle to support the stablecoin issuer’s upcoming IPO, signaling its growing role in facilitating broader industry participation.

Moreover, the firm launched its own stablecoin, JPM Coin, back in 2020, and by 2024, it had accumulated shares in multiple spot bitcoin ETFs.

Now, the bank is preparing to offer direct Bitcoin purchases to clients, reflecting a strategic embrace of digital assets amid evolving market demand.

BlackRock’s IBIT success

Meanwhile, BlackRock’s IBIT has rapidly emerged as a dominant force in the spot Bitcoin ETF landscape, amassing $69 billion in assets under management and capturing roughly 78% of the total market share.

Since its approval in January 2024, IBIT has attracted significant investor interest, with inflows surpassing 48,000 million, according to Farside Investors.

This coincided with JPMorgan CEO Jamie Dimon recently indicating that the bank will soon allow its clients to access Bitcoin, albeit with some limitations.

“We are going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients.”