JPMORGAN is planning to begin accepting exchange trade funds for Bitcoin (BTC) as collateral for the loan, Bloomberg News reported on June 4th.
Lenders also consider digital asset holdings when assessing clients’ net and current assets, and plan to place crypto along with traditional categories such as stocks, vehicles and art when assessing lending eligibility.
The move illustrates an increasing institutional trust in digital assets and an evolving approach to wealth management under the US more tolerant regulatory landscape.
The program originally includes BlackRock’s Ishares Bitcoin Trust (IBIT), which will be available to both trading and asset management clients in the coming weeks.
This shift places the largest US bank to compete more aggressively as crypto investment products gain traction between retailers and wealthy clients.
Wealth access and institutional demand
This policy is enforced globally across JPMorgan’s private client tier and provides structured credit backed by Crypto ETF Holdings.
Although banks have previously reviewed such collateral on a case-by-case basis, the new framework opens up ways to formalize practices and include additional spot Bitcoin ETFs over time.
Bitcoin ETF has grown rapidly since its debut in January 2024, with US List products currently overseeing more than $128 billion in assets. Their popularity has skyrocketed in conjunction with the broader political and institutional embrace of the sector after President Donald Trump’s election.
Jamie Dimon, CEO of JPMorgan, has consistently expressed personal skepticism about Bitcoin, but reaffirmed the company’s commitment to providing access to clients seeking exposure.
He recently said that if you personally don’t like it during the bank’s May investor presentation, lenders will “support” Bitcoin as clients want it. JP Morgan is also involved in a joint venture with other major Wall Street lenders considering launching Stablecoin.
The political wind changes
This decision comes amid a significant shift in Washington’s approach to digital assets.
Since taking office, President Donald Trump has supported a series of pro-crypto policies and has dismantled several barriers that previously prevented major banks from becoming fully involved with the sector.
His administration’s stance, strengthened by growing industry contributions and political support, has fostered a newfound optimism across the US markets and digital assets.
Trump’s companies have expanded their presence in the crypto ecosystem, from Bitcoin Treasury purchases and spot ETFs to speculative ventures that include meme tokens and infrastructure play.
With traditional financial and digital assets increasingly intertwined, JPMorgan’s collateral policy represents an important step in institutionalizing cryptocurrency.
With demand for yields, liquidity and alternative exposures continuing to grow, banks are competing to provide products that fill the old and new markets.
