JPMorgan has taken another big step into Bitcoin by filing to issue new bitcoin-backed structured notes tied to BlackRock’s IBIT ETF. These notes give big investors a way to gain exposure to Bitcoin without actually holding any crypto themselves.
According to the filing, the notes will follow the performance of the IBIT ETF and offer up to 1.5x leveraged gains, depending on how Bitcoin performs over the coming years. Investors could earn as much as 16% in returns if IBIT reaches certain price targets by December 2026.
The product also includes a safety feature: investors get their principal back in 2028 as long as Bitcoin does not fall more than 30% by that time. If Bitcoin drops more than that, losses are possible — but the built-in protection helps limit the downside.
This filing shows how quickly major banks are warming up to Bitcoin
Anthony Scaramucci, the founder of SkyBridge Capital and a strong Bitcoin supporter, called JPMorgan’s move a big moment for the crypto industry. He said many people may not fully understand how important this is, but it clearly shows that Bitcoin is becoming more accepted in traditional finance.
JPMorgan has been slowly building out its crypto strategy over the past few years. The bank already allows some clients to use Bitcoin as collateral, and it continues adding products designed for institutions that want exposure to digital assets but prefer safer, regulated structures.
Market analysts say the new structured notes prove that big investors are hungry for Bitcoin exposure, even with the price swings the market is known for.
Of course, like any Bitcoin-related product, these notes still carry risks. Bitcoin is volatile, and even with downside protection, investors must be ready for price drops and unexpected market moves.
This filing comes at a time when more large financial institutions are jumping into Bitcoin-related products, especially after the approval of spot Bitcoin ETFs in the U.S. JPMorgan’s latest move shows that institutional interest is not slowing down — in fact, it’s growing.
