JPMorgan to Begin Accepting Cryptocurrency ETFs as Loan Collateral

According to a June 4 Bloomberg report, JPMorgan Chase & Co., the largest US financial institution by assets, will soon permit qualified clients to utilize cryptocurrency-linked exchange-traded funds (ETFs) as collateral for loans.

This initiative represents a significant development in institutional cryptocurrency adoption.

The program will initially feature BlackRock’s iShares Bitcoin Trust (IBIT), currently the largest US spot Bitcoin ETF with $70.1 billion in assets under management (Sosovalue.com data).

Implementation is expected within several weeks. Notably, the bank will incorporate clients’ digital asset portfolios into net worth calculations, applying similar valuation methodologies as traditional assets for loan underwriting purposes.

This move follows JPMorgan’s progressive engagement with digital assets, including the 2020 introduction of JPM Coin (a proprietary stablecoin) and recent disclosures of spot Bitcoin ETF investments.