JPMorgan to Accept Bitcoin ETFs as Collateral for Loans: Report

Highlights:

• JPMorgan will soon accept crypto and BTC ETFs as loan collateral worldwide.
• The bank will value digital assets like traditional holdings in client portfolios.
• This rollout includes BlackRock’s iShares Bitcoin Trust, the world’s largest BTC ETF.

JPMorgan, the biggest U.S. bank by assets, is preparing to let its trading and wealth-management clients use crypto exchange-traded funds (ETFs) as loan collateral in the coming weeks, Bloomberg reported on June 4, citing sources familiar with the matter. The initiative will initially support BlackRock’s iShares Bitcoin Trust (IBIT), with more ETFs likely to be included later. IBIT holds the title of the world’s largest Bitcoin ETF. By June 4, its net assets reached around $70 billion, surpassing Fidelity Wise Origin Bitcoin Fund (FBTC) by 236%, which ranks as the second biggest ETF.

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This lending option will be available worldwide, covering a broad range of clients, from individual investors to larger accounts. JPMorgan is updating its lending policies to fully recognize crypto assets as part of a client’s total net worth and liquid holdings. A source revealed that JPMorgan used to accept crypto ETFs as collateral only in select cases. The bank now intends to make this option available to all its wealth-management clients. According to sources familiar with the shift, these assets will be treated like traditional holdings such as stocks, cars, or art. This signals a broader policy rollout of a practice previously limited to select cases. 

🚨 JPMorgan Plans to Offer Clients Financing Against Crypto ETFs pic.twitter.com/QpausRiHxM

— matthew sigel, recovering CFA (@matthew_sigel) June 4, 2025

JPMorgan Embraces Crypto Amid CEO’s Bitcoin Doubts and Evolving US Regulations

JPMorgan’s CEO Jamie Dimon has often criticized crypto. But the bank has still taken steps into the crypto world. Dimon says he does not support investing in Bitcoin. However, he believes people have the right to make that choice. JPMorgan has used blockchain for payments. It also works with crypto firms like Coinbase. After Donald Trump became president, U.S. rules around crypto became more friendly. This helped big banks launch new crypto plans. Just last month, Bloomberg revealed Morgan Stanley aims to introduce crypto trading on its E*Trade platform.

In April 2025, the Federal Reserve removed rules that warned banks not to deal with crypto or stablecoins. A month later, U.S. regulators said banks are now allowed to hold crypto for their customers. That same month, reports said some U.S. banks had started early talks about creating their own crypto stablecoin. Spot Bitcoin ETFs started in January 2024 and now manage about $128 billion in total. The crypto market has also jumped since Trump won the election, with Bitcoin hitting $111,980 in May. 

JP Morgan is the newest major traditional finance company to provide its clients with access to cryptocurrency. Crypto is a multi-trillion dollar asset class. This year, other firms like Fidelity and Standard Chartered have also launched digital asset trading services. These services are available for both institutional and retail clients.

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