JPMorgan Expands Bitcoin Exposure Through iShares Bitcoin Trust (IBIT)
JPMorgan Chase has sharply boosted its exposure to BlackRock’s iShares Bitcoin Trust (IBIT), increasing its holdings by 64% in the third quarter, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The bank now holds 5.28 million IBIT shares valued at $343 million, a notable shift in institutional crypto positioning.
The New York-based financial institution added roughly 2.07 million IBIT shares during the third quarter, up from 3.21 million reported in June. The increase, detailed in the November 7 Form 13F filing, shows a growing appetite for regulated Bitcoin exposure among central U.S. banks.
At the end of the quarter, JPMorgan’s IBIT stake was worth around $343 million, though current estimates place the value closer to $312 million following Bitcoin’s recent price correction.
The firm’s latest positions also include $68 million in IBIT call options and $133 million in put options, reflecting a structured approach to managing exposure through derivatives. These holdings span multiple divisions, including those managing funds for high-net-worth clients.
The move aligns with JPMorgan’s latest research outlook, published Wednesday, where its analysts projected Bitcoin’s price could reach $170,000 within the next 6 to 12 months. The forecast was based on declining market volatility and comparisons with gold’s performance.
Ethereum Allocation Falls to Negligible Levels
While JPMorgan’s Bitcoin allocation expanded considerably, its exposure to Ethereum-related products nearly disappeared. The filing shows the bank holds just 66 shares of BlackRock’s iShares Ethereum Trust (ETHA), worth approximately $1,700, down from 111 shares last quarter.
In addition, the firm reported matching call and put positions totaling 50,000 contracts each, suggesting minimal net exposure to Ethereum. This sharp contrast between Bitcoin and Ethereum holdings highlights a clear institutional preference for Bitcoin-based instruments, particularly amid ongoing volatility in altcoin markets.
The reduced Ethereum stake comes as Bitcoin ETFs dominate institutional inflows. According to Lookonchain, BlackRock’s IBIT alone now holds 797,014 BTC, valued at $79.78 billion. Net flows across the top ten Bitcoin ETFs recently turned positive, with inflows totaling 2,384 BTC, or $92.25 million, after a week of steady outflows.
Institutional Confidence Grows Despite Market Strain
JPMorgan’s larger IBIT stake follows months of muted ETF activity after the October 10 market liquidation, when global crypto markets fell sharply following President Donald Trump’s announcement of 100% tariffs on Chinese imports. The selloff erased record open interest across Bitcoin and Ether futures, triggering widespread deleveraging among traders.
Even with the market’s ups and downs, big investors are still showing steady interest in spot Bitcoin ETFs. Experts say these funds allow institutions to invest in Bitcoin without the hassle of storing it themselves. They also meet the rules and standards that large financial firms require.
When U.S. regulators approved spot Bitcoin ETFs in January 2024, it marked a significant turning point. It gave traditional finance companies a safer, more regulated way to invest in Bitcoin through systems they already trusted.
Notably, JPMorgan’s participation reflects how far traditional finance has moved since CEO Jamie Dimon’s earlier criticism of cryptocurrencies. Dimon once labeled Bitcoin a “fraud” and urged regulators to “shut it down,” but the bank now holds hundreds of millions in Bitcoin-linked assets.
Broader Industry Context
JPMorgan’s move shows that big financial players are becoming more comfortable with crypto, though results across the sector are mixed. Some companies are facing paper losses as crypto prices drop.
Still, major banks like Goldman Sachs and Millennium Management keep buying Bitcoin ETFs, showing steady trust in digital assets. The constant flow of capital into these ETFs suggests that traditional finance is learning to navigate crypto’s ups and downs. Even with market swings, regulated funds like IBIT are now the go-to option for safer crypto exposure.
JPMorgan’s growing Bitcoin ETF holdings and its pullback from Ethereum show a clear shift. The bank’s larger stake in Bitcoin through regulated channels shows cautious yet rising confidence in its long-term role in finance.