JPMorgan Develops Structured Notes Tied to BlackRock's Bitcoin ETF IBIT

JPMorgan Chase is preparing to launch structured notes tied to BlackRock's iShares Bitcoin Trust (IBIT), marking a significant expansion of institutional Bitcoin exposure products, according to a recent filing.

The notes offer a tiered return structure with built-in protections. If IBIT trades at or above JPMorgan's initial target price approximately one year after launch, investors will receive a minimum 16% return and the notes will be called. If below that threshold, the notes extend through 2028, with investors potentially receiving 1.5 times the ETF's gains if a second benchmark is exceeded—with no stated cap.

The product includes conditional principal protection: investors recover full principal if IBIT declines by up to 30% by 2028, but face matching losses if the drop exceeds that threshold.

Bloomberg analyst Eric Balchunas noted that such structured notes are common across asset classes. IBIT remains the largest U.S. spot Bitcoin ETF with over $69 billion in assets under management.

The move represents a notable shift for JPMorgan, which threatened to terminate employees trading Bitcoin in 2017 and faced public skepticism from CEO Jamie Dimon. The bank has since expanded its digital asset services in line with broader institutional adoption trends.