America’s largest bank, JPMorgan, is set to accept BlackRock’s Bitcoin ETF as collateral for loans to its clients in trading and asset management divisions, according to sources cited by Bloomberg.
The institution may extend this decision to other spot exchange-traded funds based on digital gold in the future.
The changes apply to all bank clients, spanning various wealth levels—from retail investors to high-net-worth individuals.
JPMorgan will also include crypto ETFs in the calculation of liquid assets. This means that exchange-traded funds on cryptocurrencies will be equated with other financial instruments when determining the amount a client can borrow against their assets, the agency clarified.
Previously, such an option was available only after consideration on a case-by-case basis.
In May, the bank’s CEO Jamie Dimon announced that the conglomerate would soon allow clients to purchase digital gold, but would not act as its custodian. In September 2024, the top manager described the institution as one of the largest users of blockchain.
Who’s Next?
Bloomberg noted that JPMorgan’s move indicates a shift in American banks’ attitudes towards digital assets—following the Trump administration’s efforts to remove regulatory barriers.
In January, the U.S. Securities and Exchange Commission repealed rule SAB 121, which effectively prohibited institutions from holding cryptocurrencies.
In February, U.S. President Donald Trump nominated Jonathan Gould to head the OCC at the U.S. Treasury. According to Ron Hammond of the Blockchain Association, if his candidacy is approved, the agency will simplify the creation of a regulatory framework for cryptocurrencies.
In March, the OCC revised its 2021 position and repealed the requirement for prior approval from the regulator for banks planning to engage in activities related to digital assets.
In the same month, the FDIC adopted a similar decision, not requiring supervised financial institutions to obtain prior consent from the agency.
In April, the U.S. Federal Reserve (Fed) announced the repeal of guidelines that discouraged banks from working with digital assets.
The Fed, FDIC, and OCC also withdrew two 2023 guidelines that warned against fraud in the cryptocurrency sector. The withdrawn joint statements indicated that unclear or misleading data from companies associated with digital assets could harm both private and institutional investors.
Earlier, CIO of Bitwise Matt Hougan predicted the inclusion of BTC-ETF in the client offerings of Merrill Lynch, Morgan Stanley, Wells Fargo, and UBS by the end of 2025.
As reported in Bernstein, institutional purchases were identified as one of the five key factors for the continued growth of the first cryptocurrency.