Advertisement
JPMorgan to Let Institutions Use Bitcoin and Ether as Loan Collateral, Marking Major Wall Street Shift
- JPMorgan will allow institutional clients to use Bitcoin and Ethereum as collateral for loans, alongside crypto-backed ETFs, representing a significant policy reversal.
- CEO Jamie Dimon previously called Bitcoin a “pet rock” and advocated for government shutdown of crypto, but has recently softened his stance on digital assets.
- The crypto market is recovering with Bitcoin trading at US$114,789 (up 2.8%) and altcoins rallying, while US spot Bitcoin ETFs saw US$444.6 million in weekly net inflows.
JPMorgan is warming up to crypto. The company plans to let institutional clients use their Bitcoin and Ethereum as collateral for loans. That would be a big deal on its own, but it’s especially notable considering what CEO Jamie Dimon has said in the past. He once compared Bitcoin to a “pet rock”, claimed crypto was mostly for criminals, and even said, “If I was the government, I’d close it down.”
Now, they’ll be accepting BTC and ETH. How times change.
JPMorgan Joins Growing Crypto Momentum
In truth, this shift has been building. Back in May, Dimon hinted that the firm’s stance was softening:
I don’t think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, go at it.
Jamie Dimon, JPMorgan CEO The bank will also let clients use crypto-backed exchange-traded funds (ETFs), including both Bitcoin and Ethereum ETFs, as loan collateral. These changes come as institutional interest continues to increase.
Spot Bitcoin and Ethereum ETFs have already gathered hundreds of billions in assets since launching last year, making them some of the fastest-growing ETFs ever.
Related: Trump Pardons Crypto Titan CZ, Declares ‘War on Crypto’ Over
ETF Flows Pick Up as Markets Stabilise
After heavy outflows during the market pullback two weeks ago, inflows have begun to return. On Thursday and Friday, U.S. spot Bitcoin ETFs saw around US$110.9 million (AU$169.6 million) in net inflows, bringing the weekly total to about US$444.6 million (AU$680 million).
The U.S. ETFs now hold roughly 1.349 million BTC, valued at US$155 billion (AU$237 billion) — about 6.4% of the total Bitcoin supply.
At the time of writing, the crypto market is back in the green. Bitcoin is up 2.8% in the past 24 hours, trading around US$114,789 (AU$175,587). Altcoins are also on the rise, with Ethereum and Hyperliquid up 5.2% and 8.09% respectively.
The rally comes as U.S. President Donald Trump visits Asia and is expected to meet Chinese President Xi Jinping during the APAC summit in Gyeongju, South Korea this week. Optimism is growing that the two leaders can work toward easing trade tensions.
Advertisement
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
