JPMorgan To Offer Bitcoin-Backed Notes Linked to BlackRock ETF

JPMorgan, the largest U.S. bank with about $4 trillion in assets under management, has filed with the Securities and Exchange Commission to offer Bitcoin-backed structured notes that track the performance of BlackRock’s ETF (IBIT).

According to the filing, investors could earn up to 16% if the ETF’s price meets or exceeds a certain level by the settlement date, with an automatic payout scheduled for December 21, 2026.

In addition, if IBIT’s price is below the target next year, investors could still earn up to 1.5x if they hold their gains by 2028 and the final price exceeds the starting price. However, if IBIT falls by 40% or more, they could lose part of their money, but they will get their full investment back if the price doesn’t drop more than 30% by 2028.

This marks the latest JPMorgan product related to Bitcoin. Last month, the bank announced that institutional and wealthy clients could use BlackRock’s IBIT as collateral. The bank also noted that Bitcoin is increasingly becoming a tradable macro asset.

Adam Livingston Says JPMorgan’s New Bond Shows it Acknowledges Bitcoin’s Rise

Bitcoin advocate Adam Livingston says JPMorgan’s new Bitcoin-backed bond shows the bank is accepting that Bitcoin is successful, even though its CEO, Jamie Dimon, called it a scam in the past. 

He noted that JPMorgan expects Bitcoin’s price to rise before 2026, as the bank has added an early-call feature to limit its losses if the Bitcoin price increases too much by next year.

Livingston also explained that JPMorgan’s main goal is to benefit from a large Bitcoin price surge in 2027-2028 without openly owning Bitcoin. To achieve this, the bank limits the bond terms to 2028 and offers investors a 1.5x upside since it isn’t concerned about paying out if Bitcoin’s price reaches $250,000 or $400,000 by then.

He added that JPMorgan can protect itself from Bitcoin price risks cheaply using tools such as options, swaps, futures, internal derivatives, and BlackRock ETF hedges.