JPMorgan Embraces Bitcoin ETFs as Collateral for Loans

JPMorgan Chase has announced a significant shift in its approach to digital assets by accepting shares of spot bitcoin exchange-traded funds (ETFs) like BlackRock’s iShares Bitcoin Trust (IBIT) as collateral for loans. This move will allow select trading and wealth-management clients to pledge certain crypto ETF holdings to secure credit. Additionally, the bank will incorporate cryptocurrency holdings into assessments of net worth and liquid assets, potentially aligning them with traditional securities like equities and bonds.