- JPMorgan to accept crypto ETFs as collateral and factor them into loan assessments.
- BlackRock’s IBIT dominates the market with $69B AUM, reshaping traditional banking sentiment.
JPMorgan Chase, the largest U.S. bank by assets, is reportedly preparing to expand its services for high-net-worth clients by allowing them to use crypto-linked assets as collateral for loans.
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.”
