JPMorgan Approves Use of Bitcoin ETFs as Collateral for Loans
JPMorgan Chase plans to allow its trading and wealth-management clients to use Bitcoin exchange-traded funds (ETFs) as collateral for loans, in a major change from traditional finance. Bloomberg reports that BlackRock’s iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF with over $70 billion in assets under management (AUM), will lead the initiative.
Crypto Now Counts Toward Net Worth
JPMorgan’s latest move underscores its growing view of crypto as a legitimate asset. Clients will be able to take loans against Bitcoin ETFs. Moreover, the bank will start including the assessable value of crypto holdings in its net worth evaluation. This means that net worth assessment will treat cryptocurrencies on par with stocks and other investments to arrive at the borrowing capacity of clients.
Before, JPMorgan used to accept crypto ETFs as collateral but on a case-by-case basis. The new policy will soon see a wider rollout, as the bank becomes more confident in digital assets due to increasing demand from clients and changing regulatory attitudes.
Jamie Dimon’s Shift on Crypto
JPMorgan CEO Jamie Dimon—who is known for being a skeptic—recently announced the bank’s plans to let clients buy Bitcoin. Dimon compared investing in crypto to smoking, saying, “I don’t think you should smoke, but I defend your right to smoke.”
Global Banks Embrace Digital Assets
JPMorgan becomes more involved in crypto services like other financial giants. International banking giant Standard Chartered has introduced digital asset trading capabilities, tapping FalconX for a partnership. Morgan Stanley is exploring crypto integration of its E*Trade platform.
Market Momentum and Regulation Changes
U.S. spot Bitcoin ETFs recorded $378 million in net inflows in a single day after three days of outflows, energizing momentum. Investors appear more confident due to the Trump administration relaxing regulations, according to market response.
In 2025, it stated, the Federal Reserve withdrew guidance discouraging banks from crypto. The Office of the Comptroller of the Currency (OCC) confirmed banks may now custody crypto, it said. The White House is also moving ahead with plans to create a national Bitcoin reserve and stockpile of digital assets, alongside efforts to pass stablecoin legislation in Congress.
Conclusion: Crypto Goes Mainstream in Traditional Finance
With institutional support increasing and regulatory barriers decreasing, the JPMorgan decision demonstrates that crypto is no longer an outsider but a fundamental component of traditional finance.
