JPMorgan to Accept Bitcoin ETFs as Loan Collateral

JPMorgan Chase plans to offer financing to clients using spot bitcoin exchange-traded funds (ETFs) such as BlackRock’s iShares Bitcoin Trust (IBIT) as collateral, Bloomberg reported Wednesday (June 4).

The decision applies globally across both retail and institutional segments and reflects the bank’s growing acceptance of regulated crypto exposure in mainstream finance.

Clients’ holdings in crypto ETFs will now count toward net worth and liquidity calculations, placing them alongside stocks and real estate in eligibility assessments. The move expands on JPMorgan’s prior case-by-case approach and follows similar digital asset initiatives from other banks, including Morgan Stanley.

The change comes amid a broader shift in regulatory tone under the current administration. Spot bitcoin ETFs — approved in January 2024 — now collectively manage over $128 billion in assets, making them among the most successful ETF launches in U.S. history.

The development also reflects a sharp pivot for JPMorgan CEO Jamie Dimon, who has been publicly skeptical of bitcoin, only offering clients access to the cryptocurrency last month.

Speaking at the firm’s investor day in May, Dimon said: “I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy bitcoin. Go at it.”

While JPMorgan does not currently offer custody or execution services for crypto ETFs, the new lending policy positions the bank to capitalize on growing institutional demand for digital asset integration. It also mirrors broader industry trends identified in PYMNTS’ latest coverage on how banks are shifting from zero crypto exposure to enabling new forms of digital asset utility.