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JPMorgan Ups Bitcoin ETF Stake by 64%, Adds Crypto Derivatives

  • JPMorgan Chase reported holding 5.3 million shares of the BlackRock Bitcoin ETF (IBIT), valued at approximately $343 million as of September 30.
  • This marks a 64% increase in JPMorgan’s Bitcoin ETF exposure since June, as disclosed in an SEC filing.
  • The bank also holds positions in Bitcoin ETF options and a range of other digital asset products, including both Bitcoin and Ethereum funds.
  • Additional investments include shares in crypto firms such as American Bitcoin Corp. and Bitmine Immersion Technologies.
  • Strategists at JPMorgan believe institutional adoption of Bitcoin is increasing, and the asset may be undervalued compared to Gold.

JPMorgan Chase disclosed in a recent regulatory filing that it now holds 5.3 million shares of the BlackRock Bitcoin ETF (IBIT), totaling around $343 million as of September 30. According to the Securities and Exchange Commission (SEC) filing, this represents a 64% growth in the bank’s IBIT holdings since June.

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The filing also revealed that JPMorgan has taken positions in Bitcoin ETF options, which are contracts giving the right to buy or sell ETF shares at a set price. This strategy suggests active use of derivatives for hedging or trading within the cryptocurrency sector.

JPMorgan has broadened its exposure to several other digital asset funds. These include the Grayscale Bitcoin Trust ETF (GBTC), the Fidelity Wise Origin Bitcoin ETF (FBTC), and the Bitwise Bitcoin ETF (BITB). In addition, the bank has holdings in Ethereum-focused investment vehicles such as the Grayscale Ethereum Trust ETF (ETHE) and the iShares Ethereum Trust ETF (ETHA).

Beyond funds, the bank owns shares in crypto-related firms like American Bitcoin Corp. and Bitmine Immersion Technologies, with 1.9 million shares in the latter, assessed at roughly $102.5 million.

While its leadership has previously voiced skepticism toward cryptocurrencies, JPMorgan is reportedly moving to allow clients to use Bitcoin and Ethereum as collateral for loans by the end of the year. CEO Jamie Dimon recently commented on this evolving approach, stating at an investor conference: “I don’t think we should smoke, but I defend your right to smoke…I defend your right to buy Bitcoin, go at it.”

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Earlier this week, JPMorgan strategist Nikolaos Panigirtzoglou said Bitcoin remains undervalued when compared to gold. His analysis pointed to increased institutional interest, greater liquidity in derivatives, and signs of asset class maturity, though price volatility and mixed market sentiment continue. At midday Friday, Bitcoin traded near $101,700 with retail sentiment appearing neutral, amid heightened discussion among market participants.

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