Bhutan Stakes $970K in Ethereum While JPMorgan Faces Backlash Over Crypto Treasury Index Rules

Bhutan Expands Ethereum Validator Operations

The Royal Government of Bhutan has staked 320 Ether worth approximately $970,000 through institutional staking provider Figment, according to blockchain data, marking the latest expansion of the Himalayan nation's cryptocurrency operations ^[1].

Figment provides staking services that enable large investors and institutions to stake digital assets across multiple blockchains and earn rewards for securing proof-of-stake networks ^[1]. The move represents Bhutan's growing commitment to Ethereum infrastructure as the nation of roughly 800,000 people continues building out its digital asset portfolio.

The staking activity follows Bhutan's October announcement that it would migrate its self-sovereign digital ID system from Polygon to Ethereum, allowing residents to verify their identities and access government services on the network ^[1]. Ethereum Foundation president Aya Miyaguchi stated at the launch event alongside Vitalik Buterin and Bhutan's Prime Minister Tshering Tobgay that all resident credentials are expected to be fully migrated by early 2026 ^[1].

Nation's Broader Crypto Strategy

Bhutan's cryptocurrency involvement extends beyond Ethereum. The country quietly began accumulating Bitcoin in 2019 by leveraging its hydropower resources for mining operations ^[1]. According to Arkham data, Bhutan now holds approximately 6,154 BTC worth over $562 million at current prices ^[1].

In July, Bhutan announced plans to integrate cryptocurrency payments across the country to boost tourism and attract younger travelers ^[1]. Officials said the initiative, supported by Binance, has onboarded nearly 1,000 merchants and aims to modernize wire transfers while reducing friction for tourists ^[1].

JPMorgan Faces Bitcoin Community Backlash

Meanwhile, JPMorgan has drawn sharp criticism from Bitcoin advocates following MSCI's proposed policy changes targeting crypto treasury companies. MSCI, the index management firm formerly known as Morgan Stanley Capital International, has proposed excluding companies with 50% or more of their assets in cryptocurrencies from its indexes, with the change set to take effect in January ^[2].

JPMorgan highlighted the proposed policy shift in a November research note, triggering backlash from the Bitcoin community and investors in companies like Strategy (formerly MicroStrategy) ^[2]. Critics argue that excluding crypto treasury companies from stock indexes would deprive them of passive capital flows and potentially force them to sell cryptocurrency holdings to qualify for inclusion, potentially driving asset prices lower ^[2].

"Saylor opened the door to the $300 trillion bond market and $145 trillion fixed income market. Now, JP Morgan is launching Bitcoin-backed bonds to compete," one Bitcoin supporter wrote on X, adding that "the same institutions attacking MSTR are copying the strategy" ^[2].

Bitcoin advocate Simon Dixon claimed that JPMorgan's upcoming product exists "to trigger margin calls on Bitcoin-backed loans" and will "force sell pressure from Bitcoin treasury companies in down markets" ^[2].

The controversy has prompted calls for a JPMorgan boycott on social media platform X, with crypto enthusiasts encouraging Bitcoin supporters to close accounts at the financial services giant and divest any shareholdings in the company ^[2].

The contrasting developments highlight the evolving landscape of institutional cryptocurrency involvement, with sovereign nations like Bhutan embracing digital assets while traditional financial institutions face accusations of attempting to limit competition from crypto-focused companies.