JPMorgan’s Bitcoin Note Sparks New Controversy
The crypto market is watching a fresh wave of tension build between JPMorgan and Bitcoin supporters. The banking giant filed for a leveraged structured note tied to the iShares Bitcoin Trust, a move that reignited anger among Bitcoin advocates who already distrust the firm’s stance on digital assets.
JPMorgan’s new product would offer investors up to 1.5 times exposure to Bitcoin. If the ETF reaches a specific price by December 2026, buyers receive a fixed payout. If not, the note continues until 2028 and offers uncapped returns. However, it multiplies potential losses if Bitcoin drops, which adds considerable risk.
Concerns Grow Over Pressure on Crypto Treasury Firms
This launch comes shortly after JPMorgan analysts circulated an MSCI proposal that would remove companies with heavy crypto exposure from major indexes. The plan targets digital asset treasury firms that hold more than half their balance sheet in crypto.
Strategy, formerly known as MicroStrategy, sits at the center of the debate. The company holds hundreds of thousands of BTC and could face billions in outflows if index providers adopt the proposal. Analysts estimate up to 2.8 billion dollars in potential outflows for Strategy alone.
Key concerns raised by critics include:
• Reduced access to passive fund inflows for Bitcoin treasury firms
• Market pressure on companies holding large BTC reserves
• Conflicts of interest as big banks enter leveraged crypto products
Bitcoin Supporters Push Back
Bitcoin advocates accuse JPMorgan of promoting its own Bitcoin-linked products while tightening the screws on long-time BTC holders. Some investors even announced they withdrew personal funds from the bank. Others urged traders to buy both Bitcoin and Strategy shares in response.
Strategy’s founder argues that the company functions as an active Bitcoin-backed finance firm rather than a simple holding company. He insists that index providers should not treat it as a passive asset vehicle.
As the situation develops, investors wonder whether JPMorgan is shaping a new phase of mainstream adoption or applying pressure to gain influence in the crypto market.
