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- JPMorgan Chase is proposing a structured note product using the BlackRock spot BTC ETF.
- JPMorgan has turned around from its CEO’s earlier pessimistic stance on Bitcoin, acquiring more BTC via IBIT.
JPMorgan Chase recently proposed a new investment product dubbed structured notes. The proposed structured note would allow investors to bet on the Bitcoin (BTC) price using BlackRock’s iShares Bitcoin Trust ETF (IBIT). According to the prospectus filed with the U.S. Securities and Exchange Commission (SEC) on November 24, 2025, the product uses IBIT as its underlying reference.
Structured notes, as described by FINRA, are instruments that combine a traditional security, like a bond, with a derivative component. The issuer of the note promises to pay a return using a formula that incorporates the performance of one or more reference assets. Accordingly, JPMorgan Chase proposed an instrument that will establish a specific price level for IBIT in December 2025. The notes mature in 2028, with an early “autocall feature” after one year, precisely in 2026.
Essentially, if IBIT is trading at a price equal to or greater than the set price, the notes will be automatically called. Consequently, investors will receive a guaranteed minimum return of 16%. However, the notes will not be called if the price of IBIT is lower than the set price a year from now. This implies participating investors will ride the investment out until 2028.
Investors will earn 1.5 times on their investment with no cap if IBIT overtakes the JPMorgan next set price by 2028. This means that investors stand to earn a huge return if Bitcoin rallies by 2028. As an added protection, investors can recoup their entire initial investment if IBIT is down in 2028. However, the decline must not exceed 30%.
JPMorgan Shifting Its Tough Stance on Bitcoin
The proposed structured note represents another step in Wall Street’s growing experimentation with financial instruments that provide exposure to digital assets. It is also a sign that JPMorgan believes Bitcoin will continue to gain more recognition in the traditional financial sector.
JPMorgan CEO Jamie Dimon once dismissed Bitcoin, describing the coin as a money-laundering tool “worse than tulip bulbs.” However, with the proposed instrument and recent recovery in the BTC price, the investment bank appears to have changed its pessimistic sentiments.
In a previous article, we discussed that JPMorgan increased its holdings in IBIT by 64%. A new filing from the bank showed it now holds more than $343 million worth of IBIT shares. Furthermore, JPMorgan highlighted in our previous article that the recent BTC slump was a buying opportunity. The bank noted that leverage resets would open the way for a healthier next uptrend.
Meanwhile, Morgan Stanley offers a similar product to the proposed structured note by JPMorgan. The product is also linked to BlackRock’s Bitcoin ETF, which last month brought in $104 million in sales, according to Bloomberg.
