Is it finally happening that crypto is welcomed by the big banks?
JPMorgan Chase clearly believes this, as it has made a similar move. According to latest reports, Bank of America will soon permit its customers to use Bitcoin ETFs as security for loans, starting with BlackRock’s iShares Bitcoin Trust (IBIT).
That is correct; you heard that right. Crypto-backed loans. At JPMorgan!
There’s something else that makes this even more interesting. It isn’t only meant to try out the technology. It is expected the program will start running in the next few weeks. IBIT serves only as an introduction to a much bigger field. There is a good chance that more ETFs will be introduced later.
The question is, why choose IBIT first? The answer is very simple. It’s massive. Because, following its launch in January 2024, it has amassed more than $70 billion. And interestingly, that’s more than 60% of all assets that are included in all U.S. spot Bitcoin ETFs put together.
Yet, JPMorgan isn’t finished when it comes to crypto.
The bank is now taking a new approach to understanding client's wealth. Moving ahead, your crypto assets such as Bitcoin, will be taken into account when evaluating your net worth.
Does your net worth fit the definition of a retail investor or a high-net-worth individual? It doesn’t matter. The new regulations will be used internationally.
Earlier, only a few clients were able to use crypto ETFs as collateral, and this was possible only in very unusual situations. This trend is turning quickly.
What is the root of this transformation? More people are demanding digital assets. Big companies & institutions, investment firms, and even governments are starting to recognize this.
Jamie Dimon, Chief Executive Officer of JPMorgan, recently brought up the topic last month. And now, it is right in front of you.
All the big banks are innovating at the same time. For example, Standard Chartered has started trading digital assets through FalconX. Meanwhile, Morgan Stanley is reportedly interested in giving crypto traders access through ETrade.
And not the least, Wall Street has ushered in a new era as crypto companies are now being welcomed to the table.
It means the banks aren’t the only ones amazed by this technology. Also, on Tuesday, $378 million was invested into U.S. spot Bitcoin ETFs. That stopped a three-day losing stretch for the ETF.
Now, should we say that crypto is truly becoming mainstream in the financial world?
Based on JPMorgan’s recent actions, the answer could be positive.
