JPMorgan's Bitcoin Strategy Faces Backlash as Community Rallies Against Institutional Marginalization

A coordinated wave of skepticism is sweeping through the Bitcoin community as JPMorgan prepares to launch its leveraged Bitcoin-backed notes, scheduled for December 2025. The financial giant’s move has sparked intense debate, particularly among supporters of Strategy and other corporate Bitcoin treasury holders who view the new product as a direct threat to their market position.

The Product at the Center of the Controversy

JPMorgan’s proposed investment instrument offers a 1.5x leveraged exposure to Bitcoin price movements through December 2028, providing amplified gains or losses for institutional investors. While positioned as a wealth management solution, community members argue the product signals JPMorgan’s intent to marginalize independent Bitcoin treasury companies by offering an alternative entry point for institutional capital.

Why Bitcoin Advocates Are Concerned

The core criticism extends beyond simple competition. According to prominent Bitcoin advocate Simon Dixon and others vocal on social media, JPMorgan’s leverage structure poses systemic risks to Bitcoin-backed lending ecosystems. During market downturns, the bank’s product could trigger cascading margin calls across treasury companies’ loans, forcing distressed selling of Bitcoin holdings exactly when prices are most vulnerable. This dynamic, critics argue, gives JPMorgan perverse incentives to destabilize competitors.

Bitcoin (BTC) currently trades at $87.42K, with the community concerned that institutional products could amplify volatility pressures on cryptocurrency holdings.

The MSCI Factor: A Coordinated Attack

Adding fuel to the fire, stock index manager MSCI has proposed excluding treasury companies holding 50% or more of assets in cryptocurrencies from its products, effective January. This policy shift would redirect passive capital flows away from these firms, potentially forcing asset sales to maintain index eligibility. The timing and content of the MSCI proposal have led many to view it as part of a broader institutional strategy to marginalize crypto-native treasury models.

Community Response and Market Implications

Across X and crypto forums, Bitcoin holders are organizing direct action, with calls to boycott JPMorgan and liquidate positions in the financial services corporation. The resistance reflects deeper concerns: that traditional finance institutions are using product launches and index policies to disrupt Bitcoin’s emerging corporate treasury ecosystem.

If both initiatives gain traction, smaller treasury companies could face a liquidity squeeze, forced to divest cryptocurrency holdings to maintain market access—creating the exact selling pressure JPMorgan’s product might profit from during downturns.