JPMorgan (JPM) is making a move that would’ve been unthinkable just a few years ago. According to a Bloomberg report on June 4, the U.S.’s biggest bank is preparing to let wealth management clients use crypto ETF holdings as collateral for loans.
The bank will reportedly start with BlackRock’s iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin ETF with more than $70.1 billion in assets, per Sosovalue.com. The offering will roll out in the coming weeks.
And there’s more: the bank will also begin counting crypto assets toward a client’s net worth when calculating how much they can borrow — essentially putting Bitcoin ETFs on the same footing as stocks and bonds.
This isn’t JPMorgan’s first foray into digital assets. The bank launched JPM Coin, its own dollar-pegged stablecoin, back in 2020. And in 2024, it disclosed holdings in multiple spot Bitcoin ETFs.
CEO Jamie Dimon has remained famously skeptical of Bitcoin itself — even comparing investing in BTC to smoking. Still, in May he told reporters, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.”
That about sums up JPMorgan’s stance: cautious, but increasingly involved.
The timing of JPMorgan’s move isn’t random. It follows a regulatory green light from the Trump administration. In April, the Federal Reserve scrapped previous guidance that warned banks off crypto. In May, the U.S. Comptroller’s office confirmed banks can now custody crypto assets for clients.
The White House also recently proposed a strategic Bitcoin reserve and is urging the Senate to pass stablecoin legislation. The key takeaway is that banks are now free to go deeper into crypto — and JPMorgan seems to be wasting no time.
For investors wondering whether JPMorgan Chase (JPM) is a good stock to buy, the latest analyst ratings on TipRanks point to cautious optimism. Based on insights from 21 Wall Street analysts over the past three months, JPM holds a “Moderate Buy” rating. Out of those, 14 analysts recommend a Buy, while seven suggest a Hold—and none have issued a Sell.
The average 12-month JPM price target is $278.40, which reflects a 5.4% upside from its current price. Bullish forecasts go as high as $330, while the lowest sits at $235.
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