JPMorgan begins allowing Bitcoin ETF as loan collateral
NEW YORK – JPMorgan Chase & Co, the world’s largest investment bank, plans to allow its trading and wealth management clients to use assets tied to cryptocurrencies, including spot Bitcoin exchange-traded funds (ETFs), as collateral for loans.
According to Nasdaq.com (4/6), the bank will begin with BlackRock’s iShares Bitcoin Trust (IBIT). Additional ETFs are expected to be added over time.
This policy will be applied globally and will cover all client segments, ranging from individual retail accounts to institutional investors.
Sources indicate that alongside the lending policy change, JPMorgan will begin recognising crypto holdings in total net worth and liquid asset assessments—placing them on par with equities, vehicles, or art when determining loan eligibility.
JPMorgan’s move follows other major financial institutions such as Morgan Stanley, which recently expanded its crypto integration by launching digital asset trading via its E*Trade platform last month.
Since returning to office, President Donald Trump’s administration has taken a more crypto-friendly stance.
Spot Bitcoin ETFs, first launched in January 2024, have seen rapid growth, now managing combined assets worth USD 128 billion—making it one of the most successful ETF launches to date.
“We’re seeing increased interest from clients in crypto-based instruments, and this is a natural step in the expansion of our financial services,” said one internal source.
JPMorgan has been a pioneer in blockchain adoption within the banking sector and maintains working relationships with major crypto companies such as Coinbase.
Although JPMorgan CEO Jamie Dimon is a known Bitcoin sceptic, he has consistently defended his clients’ rights.
During JPMorgan’s Investor Day in May, Dimon stated, “I’m not a fan of Bitcoin. I also don’t think people should smoke, but I defend your right to smoke. Same with Bitcoin.”
This new policy paves the way for further integration of digital assets into the banking system, including in lending mechanisms traditionally dominated by conventional assets.
Bitcoin’s price has surged in recent months, reaching a record high of USD 111,980 in May 2025.
The rally has driven institutional adoption and captured the attention of retail investors who have long awaited legitimacy from the traditional financial sector. (EF/ZH)