JPMorgan Chase is reportedly preparing to accept Bitcoin ETFs as collateral for loans, signaling a major shift in the integration of cryptocurrencies into mainstream finance. According to a Bloomberg report on June 4, 2025, the bank plans to allow its trading and wealth-management clients to use crypto-linked assets, including spot Bitcoin ETFs, as collateral for loans.
This move signifies a growing institutional confidence in digital assets and an evolving approach to wealth management, particularly under the more permissive regulatory landscape fostered by the Trump administration. The policy will be implemented globally across JPMorgan's private client tiers, offering structured credit backed by crypto ETF holdings. While the bank had previously reviewed such collateral on a case-by-case basis, the new framework formalizes the practice and paves the way for the inclusion of additional spot Bitcoin ETFs over time.
Initially, JPMorgan will focus on BlackRock's iShares Bitcoin Trust (IBIT), which has amassed over $70 billion in assets under management, making it the largest US spot Bitcoin ETF. However, sources indicate that other spot Bitcoin ETFs are likely to be included in the future. This decision is part of a broader strategy to allow select clients to borrow against crypto-related assets, treating digital assets similarly to traditional assets like stocks, vehicles, and fine art when evaluating a client's net worth and liquid assets.
In addition to accepting crypto ETFs as collateral, JPMorgan will also begin factoring crypto holdings into overall net worth and liquid asset evaluations. This means that wealthy clients holding substantial amounts of Bitcoin via ETFs could see their borrowing power increase significantly. The bank's new approach comes as other major financial institutions, including Morgan Stanley, explore ways to integrate crypto offerings more broadly.
JPMorgan's move comes after CEO Jamie Dimon's recent statements indicating a shift in tone regarding Bitcoin. Despite his long-standing skepticism, Dimon acknowledged client demand for Bitcoin and stated that the bank would provide access to it. He compared it to smoking, saying, "I don't think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go at it.” JPMorgan is also involved in a joint venture with other major Wall Street lenders looking to launch a stablecoin.
The shift in policy also reflects changes in the U.S. regulatory environment under President Donald Trump, who has pursued financial deregulation and taken a more favorable stance toward digital assets. The Federal Reserve recently withdrew guidance that discouraged banks from engaging in crypto and stablecoin activities, and the Office of the Comptroller confirmed that banks can now handle the crypto assets of customers held in custody. The Trump administration has also announced the creation of a strategic Bitcoin reserve and digital asset stockpile, encouraging the passage of stablecoin legislation in the Senate.
