Accusations Against JPMorgan: Bitcoiners Claim Bank Is Undermining Competitors
Bitcoin community reacts strongly to JPMorgan's new Bitcoin-backed investment notes, alleging the bank seeks to undermine its competitors.
The financial services giant, JPMorgan, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a leveraged Bitcoin (BTC) product.
Members of the Bitcoin community and supporters of Strategy, a prominent holder of Bitcoin, are expressing their discontent with JPMorgan’s Bitcoin-backed notes. These critics allege that JPMorgan is attempting to disseminate fear, uncertainty, and doubt about Strategy and other firms holding crypto treasury.
The proposed notes leverage BTC investments, amplifying the price outcomes by 1.5 times until December 2028, scheduled for a rollout in December 2025. This move has sparked significant backlash from Bitcoin supporters, who assert that JPMorgan now directly competes with BTC treasury companies, motivated by a desire to sideline these firms to favor its structured financial product.
“Saylor opened the door to the $300 trillion bond market and $145 trillion fixed-income market. Now, JP Morgan is launching Bitcoin-backed bonds to compete,” said a user on X, also adding that “the same institutions attacking MicroStrategy are copying the strategy.”
Bitcoin advocate Simon Dixon remarked that the anticipated product exists “to trigger margin calls on Bitcoin-backed loans” and could produce sell pressure on Bitcoin treasury firms during market downturns.
Currently, Strategy supporters are urging people to boycott JPMorgan by closing their accounts and selling any existing shares in the company.
The controversy escalated when MSCI, overseeing stock indexes, proposed a rule that would exclude crypto treasury firms from its benchmarks. This policy shift, effective January, would prevent treasury firms with over 50% of their assets in cryptocurrencies from participating in the index. Critics indicate that this could eliminate passive capital inflow to these companies, compelling them to liquidate their crypto assets and further depress market prices.
