JPMorgan Bets Big on Bitcoin ETFs While Corporate Treasuries Flounder

Wall Street's love affair with Bitcoin ETFs heats up as JPMorgan doubles down—just as traditional corporate cash management hits the skids.

The ETF Gold Rush

While CFOs scramble to find yield in a zero-rate world, Jamie Dimon's empire is quietly loading up on crypto exposure. The irony? JPMorgan once called Bitcoin 'a fraud.'

Treasury Departments Left Holding Bag

Corporate balance sheets are drowning in cash with nowhere to park it—unless you count those juicy 0.5% money market yields. Meanwhile, Bitcoin ETFs siphon institutional capital at record pace.

The Cynic's Take

Nothing unblocks Wall Street's innovation pipeline like watching client funds evaporate in old-school instruments. Who needs stable returns when volatility's back on the menu?

TLDR

• JPMorgan increases its BlackRock Bitcoin ETF holdings to 5.28 million shares, valued at $343 million.
• The bank’s Bitcoin ETF position rises 64% from the previous quarter, showing continued interest in crypto.
• JPMorgan also holds $68 million in IBIT call options and $133 million in put options.
• Corporate treasury portfolios, including Evernorth and MicroStrategy, face significant unrealized losses.
• Evernorth’s XRP position falls by $79 million, while MicroStrategy’s stock drops 53% due to Bitcoin’s decline.
• Despite losses, firms like Saylor’s Strategy and Sharplink Gaming remain committed to crypto accumulation.

JPMorgan has reported a major increase in its holdings of the BlackRock Bitcoin ETF (IBIT), now valued at $343 million. According to the bank’s latest 13F filing, the bank holds 5.28 million shares of IBIT as of September 30, marking a 64% rise from the previous quarter. The filing also includes details of JPMorgan’s options activity in the ETF, which involves a combination of call and put positions.

JPMorgan Expands Its BlackRock Bitcoin ETF Position

JPMorgan’s recent filing shows a 64% increase in its investment in the BlackRock bitcoin ETF (IBIT). The bank now holds 5.28 million shares, valued at approximately $343 million. This represents a substantial rise from the 3.21 million shares reported in June.

Alongside this increase, JPMorgan’s filing also reveals its active positions in IBIT options. The bank holds $68 million in IBIT call options and $133 million in put options. These positions span across multiple bank divisions, including exposure linked to high-net-worth clients.

Despite the downturn in the cryptocurrency market, JPMorgan’s move highlights the bank’s continued interest in Bitcoin-related investments. The firm’s bullish stance is reflected in its prediction that Bitcoin’s price could reach $170,000 within the next year.

Crypto Treasury Losses Mount for Corporate Firms

While JPMorgan’s Bitcoin-related holdings are on the rise, other corporate treasury portfolios are facing large unrealized losses. The recent downturn in the market has hit companies with crypto holdings, including Evernorth, Strategy, Metaplanet, and Bitmine. These firms are experiencing significant losses as token prices continue to slide.

Evernorth, for example, recently bought 388.7 million XRP for $947 million, only to see its value drop to $868 million. The firm is now facing an unrealized loss of around $79 million. Similarly, Strategy’s stock has fallen by about 53%, reflecting the decline in Bitcoin’s price, which closely tracks the company’s holdings.

Metaplanet, another corporate Bitcoin holder, is also facing difficulties. The firm holds 30.8 BTC, purchased at an average price of $106,000. Its unrealized loss now amounts to nearly $120 million, and its stock has dropped almost 80% from its peak.

Other Firms Remain Active in Crypto

Despite the losses reported by some firms, others remain committed to crypto. Saylor’s Strategy, known for its Bitcoin accumulation, bought 397 BTC recently. Similarly, Sharplink Gaming, which holds a large ETH treasury, is optimistic about a faster price recovery for Ethereum.

Although several companies are seeing losses in their crypto positions, the activity remains mixed. Companies like JPMorgan and Saylor’s Strategy continue to hold and even increase their positions, while others face mounting losses. As crypto prices fluctuate, firms’ treasury portfolios are seeing both ups and downs.