JP Morgan to Accept Crypto ETF Shares as Loan Collateral for Wealthy Clients
Wall Street heavyweight JP Morgan is reportedly preparing to let its wealthy clients use shares in cryptocurrency exchange-traded funds (ETFs)—such as BlackRock’s iShares Bitcoin Trust—as collateral for loans.
According to unnamed sources cited by Bloomberg, which first broke the story, the bank also intends to include clients’ crypto holdings when evaluating their net worth and liquidity. This shift would place digital assets on par with traditional assets like real estate and vehicles in determining a client’s creditworthiness.
This move marks a notable evolution in JP Morgan’s stance on crypto. CEO Jamie Dimon has long been a vocal critic of Bitcoin, famously dismissing it as a “pet rock” and associating its utility with criminal activity. Nonetheless, the bank has acknowledged client interest in digital assets, recently announcing plans to enable trading of Bitcoin and Ethereum.
Despite Dimon’s skepticism, JP Morgan has embraced the underlying blockchain technology for its own internal money-moving initiatives.
With this development, JP Morgan joins a growing list of traditional financial institutions stepping deeper into crypto. Firms like Fidelity and Standard Chartered have also launched digital asset trading platforms this year, catering to both institutional and retail investors.
The U.S. Securities and Exchange Commission (SEC) gave the green light last year to Bitcoin and Ethereum ETFs, allowing investors to gain exposure to crypto through regulated stock market products.
These ETFs—managed by asset management giants such as BlackRock, Fidelity, and Grayscale—have enjoyed record-breaking popularity. BlackRock’s iShares Bitcoin Trust (IBIT), in particular, has emerged as a leader, with over $70 billion in assets under management.
