Bank Will Start With BlackRock’s Bitcoin ETF as Collateral Option for Wealth Clients

JPMorgan Chase & Co., the largest bank in the United States by assets, is preparing to allow crypto-linked exchange-traded funds (ETFs) to be used as collateral for loans, according to a June 4 report by Bloomberg. The move signals the bank’s growing willingness to incorporate digital assets into its mainstream lending and wealth-management operations, despite CEO Jamie Dimon’s well-known skepticism of the sector.

The program will begin with BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF in the U.S., with over $70 billion in assets under management, according to data from Sosovalue.com.

Crypto ETFs to Support Lending Activities

JPMorgan’s new offering will allow wealth-management and institutional clients to use crypto ETF holdings as collateral for secured loans. This effectively treats crypto-linked assets — particularly spot Bitcoin ETFs — in a similar fashion to traditional securities such as equities or mutual funds.

The initial rollout will focus on the iShares Bitcoin Trust (IBIT), with other ETFs possibly added in the future depending on market liquidity, regulatory clarity, and client demand.

Additionally, the bank said it would consider clients’ direct crypto holdings when assessing their net worth. This could impact borrowing capacity, offering high-net-worth individuals and family offices more flexibility in credit decisions.

A Gradual Shift in JPMorgan’s Crypto Stance

Though JPMorgan has historically taken a conservative approach to cryptocurrency, the bank has slowly expanded its exposure and services in recent years. In 2020, it launched JPM Coin, a U.S. dollar-pegged stablecoin used for wholesale payments between institutional clients.

In 2024, the bank also reported holding shares of several spot Bitcoin ETFs across its asset management and wealth divisions, signaling a shift in how digital assets are being treated within traditional finance institutions.

“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” JPMorgan CEO Jamie Dimon said in May 2025, reiterating his personal skepticism toward cryptocurrencies while acknowledging customer demand.

Regulatory Environment Turns More Favorable

The bank’s move comes amid a broader policy shift in Washington under the Trump administration, which has taken a more supportive stance on digital assets. In April 2025, the Federal Reserve withdrew guidance that previously discouraged banks from engaging in activities related to crypto and stablecoins.

In May, the Office of the Comptroller of the Currency (OCC) confirmed that banks are now permitted to hold digital assets in custody for their customers — a key regulatory green light that paved the way for JPMorgan’s announcement.

Also in May, The Wall Street Journal reported that several U.S. banks had entered early-stage discussions about launching a shared crypto stablecoin, further signaling growing institutional alignment around digital finance infrastructure.

White House Pushes Strategic Crypto Initiatives

The broader political landscape is also rapidly shifting. The Trump administration has introduced a series of initiatives aimed at building out the U.S.’s digital asset ecosystem, including:

• A proposal for a strategic Bitcoin reserve

• The development of a national digital asset stockpile

• Legislative support for a stablecoin regulatory framework, currently under discussion in the U.S. Senate

These moves are designed to incentivize innovation and strengthen U.S. leadership in the global crypto economy, particularly amid growing competition from jurisdictions like Hong Kong, Dubai, and the European Union.

Implications for Wealth Clients and the Market

JPMorgan’s decision to accept crypto ETFs as loan collateral could have wide-ranging implications for private wealth management, family offices, and institutional investors. By recognizing these assets as part of a client’s financial profile, the bank is enabling more dynamic capital allocation and expanding access to structured credit products secured by blockchain-linked assets.

The move also lends further legitimacy to Bitcoin ETFs, which have grown significantly in market share since their SEC approval in early 2024. With banks now beginning to integrate them into credit systems, ETFs could act as a bridge between traditional finance and crypto markets, especially for risk-managed portfolios.

What Comes Next?

JPMorgan is expected to monitor the performance and stability of its crypto ETF-collateralized lending operations before potentially expanding to include other crypto products, such as:

• Ethereum or Solana-based ETFs

• Stablecoins held in regulated custodial accounts

• Tokenized real-world assets (RWAs) such as private equity and real estate

Analysts say the program may eventually open the door for crypto-native clients, including Web3 startups and DeFi-focused funds, to access bank-grade credit services—a key development in bridging traditional banking with decentralized finance.

Conclusion

JPMorgan’s move to accept Bitcoin ETFs as collateral for loans marks a notable step in the institutional adoption of digital assets. While CEO Jamie Dimon continues to voice personal reservations about cryptocurrencies, the bank’s actions underscore a pragmatic shift driven by client demand, regulatory clarity, and evolving financial infrastructure.

Amid a more crypto-friendly environment in Washington, JPMorgan’s adoption of ETF-backed lending could accelerate the mainstream financialization of digital assets — with broader implications for credit markets, asset custody, and capital formation in the Web3 era.