JPMORGAN TO ACCEPT BITCOIN ETFS AS LOAN COLLATERAL: DETAILS…

- JPMorgan Chase announces to let clients use Bitcoin ETFs as loan collateral, starting with BlackRock’s iShares Bitcoin Trust, Bloomberg reports.

- BlackRock’s IBIT ETF, launched in January 2024, manages over $70 billion, making it the largest U.S. spot Bitcoin ETF.

- JPMorgan’s new policy will allow its trading and wealth management clients worldwide to leverage IBIT and, later, other crypto ETFs as collateral for loans.

- Previously, JPMorgan accepted crypto ETFs as collateral only in limited cases. Now, this approach will apply broadly, reflecting growing client demand and institutional acceptance of digital assets.

- The bank will also include crypto holdings when assessing client net worth and liquid assets.

- JPMorgan’s move aligns with CEO Jamie Dimon’s recent statement supporting Bitcoin purchases by clients.

- This also follows similar initiatives by Standard Chartered and Morgan Stanley to offer crypto trading and investment options.

- Political developments may further ease crypto regulation, making it harder for banks to sideline digital assets without risking reputational damage.