JP Morgan Taps Bitcoin ETFs for Institutional Lending Push

- JP Morgan launches loan product using Bitcoin ETF as collateral - Expansion of liquidity provision for institutional investors [Unblock Media] The largest bank in the US, JP Morgan, is accelerating the institutional incorporation of the digital asset market by launching a loan product using Bitcoin ETFs as collateral. As of the end of May 2025, JP Morgan has initiated a Bitcoin ETF-linked funding program for its private banking clientele. Customers can secure loans in US dollars by collateralizing Bitcoin ETFs from major asset managers like BlackRock and Fidelity. The loan limits are set at 50-60% of the collateral value, and additional collateral may be required if prices drop. This measure is designed similarly to traditional securities-backed loans and is expected to promote increased liquidity provision for institutional investors. Additionally, JP Morgan’s announcement aligns with the trend of Bitcoin becoming a core infrastructure of Web3. The TVL (Total Value Locked) in the Stacks Layer 2 DeFi (Decentralized Finance) ecosystem has increased by 260% year-on-year, reaching $700 million, and Bitcoin-based NFT and BRC-20 token transactions have been highly active with over 1.6 million daily transactions. JP Morgan, along with DBS and Nomura, is experimenting with RWA (Real-World Asset) settlement protocols based on the Bitcoin network. The inflow of ETFs also warrants attention. As of the first week of June, the US Bitcoin spot ETF saw a net inflow of $350 million, an increase of about 80% from April. Market experts suggest that while increased liquidity may lead to short-term price volatility, the long-term holding by institutions is likely to bring about mid- to long-term stability. JP Morgan's decision is viewed as a significant step in officially positioning Bitcoin as a 'trusted asset'.