JPMorgan Expands Cryptocurrency Efforts with Bitcoin-Backed Securities

JPMorgan has announced plans to issue structured notes backed by Bitcoin that will be linked to BlackRock’s Bitcoin exchange-traded fund (IBIT). This financial instrument aims to provide institutional investors with up to 1.5x leveraged returns and conditional principal protection.

Key Takeaways

JPMorgan has filed to create Bitcoin-backed structured notes tied to BlackRock’s IBIT ETF.
Investors can benefit from leveraged returns of up to 1.5x and potential 16% returns based on performance targets by December 2026.
These structured notes offer a safety net for principal repayment in case of significant drops in Bitcoin’s price.
The initiative underscores a growing trend of institutional adoption of cryptocurrency products.
Financial experts warn about the inherent volatility risks associated with these investment vehicles.

JPMorgan Chase & Co. has officially filed to provide Bitcoin-backed structured notes that will track the performance of BlackRock’s Bitcoin exchange-traded fund (IBIT), according to the latest regulatory filings. These notes are designed for institutional investors who seek exposure to Bitcoin without holding the cryptocurrency directly.

According to the filing, investors who hold these notes until 2028 may potentially enjoy leveraged returns of up to 1.5x, depending on Bitcoin’s performance. If the price of IBIT meets designated targets by December 2026, investors stand to gain returns of up to 16%. Notably, the structured notes also come with a protective mechanism that secures principal repayment if Bitcoin's price declines by no more than 30% by 2028.

While investors may incur losses in the event of significant price drops, the downside risk is somewhat mitigated by this protective feature, according to the bank's filing.

JPMorgan deepens crypto push with Bitcoin-backed securities - 1

Criticism of JPMorgan’s Bitcoin ETF Initiative

Anthony Scaramucci, founder of SkyBridge Capital, commented that JPMorgan’s filing is a critical milestone for the cryptocurrency industry. A known supporter of Bitcoin, Scaramucci remarks that this development signifies Bitcoin's increasing relevance within the conventional financial landscape.

“I don’t think people are fully understanding how huge it is that JP Morgan is now offering a Bitcoin-backed bond.”
— Anthony Scaramucci (@Scaramucci) November 26, 2025

“The public may not fully comprehend the ramifications of JPMorgan’s decision, but it is a clear indicator that Bitcoin is achieving mainstream acceptance,” he added.

This filing is part of JPMorgan's larger strategy to incorporate cryptocurrency into mainstream finance. The bank has already made strides in allowing clients to use Bitcoin as collateral for various transactions and loans.

As the largest U.S. bank by assets, JPMorgan has been broadening its range of cryptocurrency offerings, signaling a growing institutional interest in digital assets. Market analysts believe that these structured notes reflect an increasing demand for Bitcoin-related investment products.

However, financial experts caution that Bitcoin-backed structured notes do carry risks that stem from the volatile nature of the cryptocurrency market. Investors need to be aware of potential market fluctuations despite the protective features built into these investment products.

This filing comes at a time when major financial institutions are exhibiting a heightened interest in Bitcoin investment products, especially following the approval of spot Bitcoin ETFs in the United States.