JPMorgan Proposes Leveraged Product Linked to Bitcoin ETF

According to Odaily, JPMorgan has submitted a proposal to regulatory authorities for a leveraged structured note product tied to BlackRock's iShares Bitcoin Trust (IBIT) ETF. This product would enable investors to speculate on the future price of Bitcoin. The prospectus outlines that if the IBIT ETF's price meets or exceeds a predetermined level by December 21, 2026, JPMorgan will redeem the note early, paying at least $160 per $1,000 note. However, if the price falls below the set level by that date, the note will be held until 2028. In this scenario, pending SEC approval, investors could receive 1.5 times the returns from any increase in Bitcoin's price, potentially leading to significant gains if Bitcoin surges by 2028. The document also cautions that if Bitcoin's price drops significantly, by 40% or more, investors could lose a substantial portion of their initial investment. JPMorgan warns that Bitcoin has historically exhibited higher price volatility compared to traditional asset classes and may continue to experience extreme fluctuations. Bloomberg ETF analyst James Seyffart noted that such operations by banks on "any asset you can think of" are quite common.