Bitcoiners Accuse JPMorgan of Manipulating the Market Against Strategy and Crypto Treasury Firms

The Bitcoin community and proponents of Strategy, the largest holder of Bitcoin among corporations, are criticizing JPMorgan for its planned Bitcoin-backed notes. They allege that the bank is spreading fear and uncertainty about Strategy and other crypto treasury firms, positioning themselves as competitors within the crypto market.

Key Takeaways

JPMorgan's New Product: The bank has introduced Bitcoin-backed notes aimed to provide leveraged investments on Bitcoin’s performance.
Community Backlash: Bitcoin advocates are accusing JPMorgan of attempting to undermine existing Bitcoin treasury firms like Strategy.
MSCI Policy Proposal: A potential policy change by MSCI could further disadvantage crypto treasury companies by limiting their access to stock indexes.

Bitcoiners Accuse JPMorgan of Manipulating the Market

JPMorgan's Bitcoin-backed Notes and Community Concerns

Members of the Bitcoin community, alongside supporters of Strategy—currently the largest corporate holder of Bitcoin—are vocally opposing JPMorgan's proposed Bitcoin-backed notes. They claim these notes aim to create fear, uncertainty, and doubt about Strategy and similar crypto treasury firms.

JPMorgan's notes will function as a leveraged investment product linked to Bitcoin's price. This means the product is designed to amplify the investment's outcome, offering holders 1.5 times the gains or losses until December 2028. They are scheduled to launch in December 2025, according to a filing with the SEC.

This initiative has incited considerable criticism from the Bitcoin community, with many arguing that JPMorgan is positioning itself as a direct competitor to companies like Strategy. Critics believe the bank has a vested interest in undermining crypto treasury companies to promote its own structured investment products.

Bitcoin Regulation, MicroStrategy, Bitcoin Adoption, Companies _Fact sheet for JPMorgan’s Bitcoin notes. Source:_JPMorgan

One Bitcoiner expressed on X, “Saylor opened the door to the $300 trillion bond market and $145 trillion fixed income market. Now, JP Morgan is launching Bitcoin-backed bonds to compete,” adding that “the same institutions attacking MSTR are copying the strategy.”

Bitcoin advocate Simon Dixon also commented on the situation, indicating that JPMorgan’s new financial instrument is designed “to trigger margin calls on Bitcoin-backed loans,” which could increase sell pressure from Bitcoin treasury companies in unfavorable market conditions.

In response, many crypto enthusiasts and Strategy supporters are advocating for a boycott of JPMorgan, urging members of the Bitcoin community to close their accounts with the bank and divest any shares they may hold in the financial institution.

Bitcoin Regulation, MicroStrategy, Bitcoin Adoption, Companies _Source:_The Bitcoin Therapist

Tension Arises Over MSCI Rule Change Proposal

The discontent directed at JPMorgan gained momentum after MSCI, previously known as Morgan Stanley Capital International, proposed a policy change that would exclude treasury companies from its index products. This proposal, which is set to take effect in January, would prevent any crypto treasury company with 50% or more of its assets held in cryptocurrencies from being included in the index.

JPMorgan circulated this proposed policy change in a November research note, which led to further outrage from both the BTC community and investors in Strategy. Excluding crypto treasury companies from stock indexes could deprive these entities of crucial passive capital flows, potentially forcing them to liquidate their crypto holdings to meet inclusion criteria. This could, in turn, lead to a decrease in asset prices and create a more challenging landscape for these companies.

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