Expansion into Crypto-Backed Lending
JPMorgan Chase is taking a decisive step into cryptocurrency finance by allowing selected clients to use Bitcoin-linked exchange-traded funds (ETFs) as collateral for loans. This change means that clients in trading and wealth management divisions can now access financing based on the value of approved crypto ETFs, with BlackRock’s iShares Bitcoin Trust leading the rollout.
This approach treats cryptocurrency-based financial products similarly to traditional assets such as equities, real estate, or luxury items. While the bank had previously made some exceptions on a case-by-case basis, the current move reflects a broader and more structured strategy to support clients with digital asset holdings.
Image 1: J.P. Morgan (Source: The Block)
Wealth Clients Gain New Asset Recognition
In addition to loan backing, Bloomberg revealed that JPMorgan will now consider cryptocurrency holdings as part of a client’s overall wealth profile. This applies across the bank’s wealth management services globally, spanning from everyday customers to those with significant assets. Under the new policy, holdings in specific crypto ETFs will contribute to the evaluation of a client’s financial standing and available liquidity.
This update aligns with the bank’s ongoing efforts to provide more inclusive financial services to clients engaged with digital investments. The broader inclusion of crypto-related instruments in wealth assessments marks a clear shift in how mainstream financial institutions recognise and integrate digital assets.
Industry Momentum and Market Context
The move comes in the wake of regulatory changes under the current administration of President Donald Trump, who has introduced a range of policies supporting the digital asset sector. With fewer restrictions, major financial institutions are beginning to increase their exposure to crypto markets.
Bitcoin ETFs, particularly those approved in January 2024, have been one of the strongest financial product launches in the US market’s history. These products allow investors to gain exposure to Bitcoin without managing the asset directly. They have grown rapidly in popularity, now overseeing around USD 128 billion in combined assets. As a result, they have become an attractive option for institutions looking to offer crypto exposure in a regulated and secure manner.
The price of Bitcoin has also surged significantly in this environment, reaching a peak of USD 111,980 in May 2025. Market analysts attribute much of this growth to the post-election momentum following Trump’s return to office and renewed institutional interest.
Image 2: J.P Morgan to accept Bitcoin ETF (Source: Siam Blockchain)
Strategic Repositioning by Traditional Finance
Although JPMorgan’s chief executive, Jamie Dimon, has previously expressed doubt about the long-term value of cryptocurrencies, the bank has maintained a practical approach in its services. Dimon has consistently stated that while he may not personally support investing in Bitcoin, the bank would continue to facilitate client demand in that space.
The bank was among the early adopters of blockchain infrastructure for payment solutions and has established business relationships with major cryptocurrency platforms such as Coinbase. Its latest expansion into crypto-collateralised lending reflects an understanding of shifting client preferences and asset trends.
Read Also: Paul Atkins Champions Clear Crypto Regulation in the U.S.
Other financial institutions are also moving in a similar direction. Morgan Stanley, another leading American bank, is reportedly preparing to integrate cryptocurrency trading into its E*Trade platform. This follows a growing trend among banks to adapt their offerings to include digital asset services, as interest from both retail and institutional investors continues to rise.
Industry voices have noted the speed at which attitudes are changing in the banking sector. Cedric Beau, a cryptocurrency investor and commentator, recently pointed out that major institutions that previously questioned Bitcoin’s legitimacy are now actively building services around it. He highlighted this shift as part of a broader trend in which financial firms respond rapidly to emerging investment opportunities, especially those that capture public and institutional attention.
That was fast lol
Less than a year ago JPM was trashing Bitcoin. Now they’re handing out loans backed by crypto ETFs
Say what you want about Wall Street, but they don’t miss a trend. They front-run it, wrap it, and sell it back to the crowd
This isn’t mass adoption. It’s asset…
— Cedric Beau (@Web3BeauCedric) June 4, 2025
The inclusion of Bitcoin ETFs as accepted collateral signals a new level of acceptance for digital assets within mainstream banking. It demonstrates how financial institutions are adapting to a world where cryptocurrencies are increasingly part of diversified portfolios. While banks may not fully embrace all aspects of the crypto economy, they are finding pathways to participate through regulated and familiar financial structures.
