#BitcoinPriceOutlook

- JPMorgan is launching Bitcoin and Ethereum-backed loans for institutional clients by the end of the year:

JPMorgan plans to allow institutions to access loans secured by Bitcoin and Ethereum before the end of the year.
The product will serve clients worldwide with the investment bank outsourcing digital custody services.
The CEO of JPMorgan, Jamie Dimon, who previously dismissed Bitcoin as "a fraud masquerading as a currency," has recently softened his stance.

Reports indicate that JPMorgan Chase plans to offer loans backed by Bitcoin (BTC) and Ethereum (ETH), targeting institutional clients by the end of the year in what is seen as a paradigm shift in the bank's policy.

- JP Morgan capitalizes on Wall Street's rush towards cryptocurrencies
According to a Bloomberg report, the loan product will accept both Bitcoin and Ethereum as collateral. Sources familiar with the matter, who wished to remain anonymous, stated that JP Morgan will contract a third party for asset custody.

JPMorgan began accepting cryptocurrency exchange-traded funds as collateral for loans in June, with limited access for BlackRock clients. The investment bank also assesses the holdings of cryptocurrency exchange-traded funds as net worth and liquid assets during evaluations.

Since the approval of Bitcoin exchange-traded funds in January 2024, Wall Street has turned towards the cryptocurrency sector as institutions seek alternative investment tools. In less than two years, Bitcoin exchange-traded funds have gathered nearly $62 billion in net inflows and $149 billion in net assets, according to SoSoValue.

Image of Bitcoin Exchange-Traded Fund Statistics | Source: SoSoValue

The Ethereum spot exchange-traded funds (ETFs) have seen their highest growth rate this year, with average inflows of $14.45 billion on Friday, bringing total net assets to $26 billion. Nine ETF funds are operating in the United States.

Image of Ethereum ETF Statistics | Source: SoSoValue

JPMorgan's interest in Bitcoin and the cryptocurrency market has taken a different turn in recent months, as the traditional financial sector has begun to integrate the asset class amid positive regulatory shifts.

For JP Morgan, the adoption of digital assets is a symbolic step, as CEO Jamie Dimon had previously described Bitcoin as "a fraud that is overhyped." Dimon once referred to Bitcoin as a "pet rock," indicating that it is fundamentally worthless.

The CEO has recently softened his stance on Bitcoin, with JPMorgan showing interest in customer needs.

Demon said at the J.P. Morgan investor conference in May: "I don't think we should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin, let's go."

According to Bloomberg, JPMorgan also plans to allow customers to access major cryptocurrencies such as Bitcoin and Ethereum on the E*Trade retail platform in 2026.