Crypto News: JPMorgan to Expand Loan Options with Bitcoin ETFs

JPMorgan Chase, America’s largest bank by total assets, will soon allow clients to use Bitcoin exchange-traded funds (ETFs) as collateral for loans. This crypto news, first reported by Bloomberg, marks a notable shift in how traditional banks evaluate digital assets for credit.

JPMorgan holds roughly $3.9 trillion in assets under management. BlackRock’s iShares Bitcoin Trust (IBIT) now has over $20 billion in assets—making it the largest Bitcoin ETF in the U.S.

By accepting IBIT shares as collateral, JPMorgan will effectively treat each share like a share of stock or a piece of fine art in its lending calculations.

Starting in early June, selected trading and wealth-management clients can pledge IBIT to secure loans.

Recent crypto news highlights that this move indicates growing institutional acceptance of regulated Bitcoin products.

Crypto News: JPMorgan Policy Details and Scope

According to Bloomberg’s crypto news report, the policy initially covers only Bitcoin ETFs, with IBIT as the first eligible product.

The bank will value these ETF shares at prevailing market prices, similar to how it handles equity or real estate collateral.

In practice, a client who owns $1 million worth of IBIT shares could borrow a portion of that value—subject to margin requirements and risk limits.

These rules will apply globally across JPMorgan’s wealth-management division. Retail investors, mass-affluent clients, and high-net-worth individuals can all participate.

Previously, JPMorgan allowed clients to borrow against stocks, bonds, art, and vehicles. With this change, digital assets enter the same category.

In recent crypto news analysis, experts noted that broadening collateral options could boost liquidity for crypto-savvy clients.

This move signals growing confidence in regulated Bitcoin ETFs. On May 23, 2025, Bitcoin peaked at $111,814—its highest level ever recorded on major exchanges.

Meanwhile, Bitcoin ETFs have attracted over $50 billion in inflows since January 2024. By accepting ETF shares as collateral, JPMorgan validates Bitcoin’s role in mainstream portfolios. Crypto news outlets have pointed out that institutional interest in ETFs has driven a surge in trading volumes.

In addition, the bank will factor clients’ crypto ETF holdings into net worth assessments. That means a client with $2 million in IBIT shares will see that full amount added to their portfolio value.

What Next ?

The change effectively boosts borrowing power and opens new financing avenues for crypto investors.

Recent crypto news bulletins emphasize how inclusion of digital assets in net worth calculations can expand credit lines for long-term holders.

Historically, major U.S. banks cited regulatory uncertainty and volatility concerns when avoiding crypto exposure. In 2022, JPMorgan restricted clients from opening certain crypto-derivative positions.

Now, the bank’s embrace of Bitcoin ETFs marks a reversal. It follows similar steps by Goldman Sachs and Morgan Stanley, which began offering Bitcoin fund access in 2023.

Crypto news platforms have chronicled this gradual shift, highlighting improved regulatory clarity. However, JPMorgan’s policy goes further by allowing direct lending against digital-asset-backed instruments.

By contrast, many competitors only permitted trading of spot ETFs or futures. JPMorgan will likely set loan-to-value (LTV) ratios based on market stress tests. For highly liquid stocks, the LTV might be 50 percent.

For Bitcoin ETFs—subject to daily swings—LTV could be closer to 30 percent. The exact thresholds remain confidential, per Bloomberg’s crypto news sources.

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