JPMorgan will offer loans backed by crypto ETFs, including BlackRock’s Bitcoin fund, marking a significant shift in traditional finance strategy.
In a significant change, the world’s largest bank, JPMorgan, will start lending money to people using crypto ETFs as protection.
The bank will begin with the BlackRock Bitcoin ETF (IBIT) for this deal.
JPMorgan Will Let BlackRock’s Bitcoin ETF Be Used As Loan Collateral
A story from Bloomberg says that the company will start lending money against crypto exchange-traded funds, starting with BlackRock’s Bitcoin ETF in the next few weeks.
This is the latest time traditional finance (TradFi) has used cryptocurrencies.
This is because the Trump administration continues to eliminate all legal barriers.
The story also said that JPMorgan will start looking at its wealth management clients’ crypto holdings when determining their total net worth and cash.
This means that Bitcoin and other crypto assets might be treated like real estate, stocks, and valuable metals when determining how much a client can borrow against their assets.
It is important to note that this comes after the Moscow Exchange recently started trading Bitcoin futures tied to the BlackRock Bitcoin ETF.
Only accredited investors were able to access the exchange at first.
Since it began trading last year, the IBIT ETF has gotten much attention from institutional buyers.
According to SoSoValue, the fund currently has net assets of $70.16 billion. The money kept coming into the fund for 31 days, ending on May 30.
Because of all this interest, Eric Balchunas, a Bloomberg expert, thinks that by next year, the Bitcoin ETF will have more Bitcoin than Satoshi Nakamoto’s 1.12 million BTC stash.
Balchunas wrote on X about the 25 biggest ETFs, and the BlackRock Bitcoin ETF was one of them. The BTC ETF is the youngest by nine times and ranks 23rd. Balchunas said that this might be the craziest IBIt stat yet, even though many of them exist.
Also, JPMorgan’s new proposed offering comes even though CEO Jamie Dimon isn’t sure Bitcoin is a good asset class. Not long ago, Jamie Dimon told the US to keep guns and rare earths instead of Bitcoin.
