JPMorgan’s leveraged Bitcoin notes draw criticism as supporters of major BTC treasury firms warn of market distortion and competitive pressure.1
JPMorgan’s Leveraged Bitcoin Product Raises Concerns
A newly proposed Bitcoin-backed investment product from JPMorgan is drawing intense backlash from the crypto community, particularly supporters of major corporate BTC holders such as Strategy. The bank has filed with the U.S. Securities and Exchange Commission to launch leveraged Bitcoin-linked notes, a financial instrument designed to deliver 1.5 times the gains — or losses — of BTC price movements through December 2028.
Scheduled for launch in December 2025, the notes are positioned as a structured alternative for investors seeking amplified exposure to Bitcoin’s performance.
However, critics argue that JPMorgan is positioning itself as a direct competitor to leading Bitcoin treasury companies while simultaneously benefiting from narratives that cast these firms in a negative light.
Bitcoin Advocates Claim Market Manipulation Risks
Bitcoin holders and industry commentators have accused JPMorgan of using its influence to undermine companies holding large Bitcoin reserves, claiming the bank has an incentive to weaken their position as it markets its new financial product.
Some community members highlighted that institutions previously skeptical of Bitcoin are now replicating the strategies of major BTC treasuries, suggesting an attempt to capitalize on their success while limiting their market impact.
Others warn that the leveraged structure may indirectly increase forced selling during downturns, with Bitcoin advocate Simon Dixon arguing that such products could “trigger margin calls on Bitcoin-backed loans,” pressuring corporate holders during market stress.
Calls for a boycott of JPMorgan have since circulated across social platforms, with some Bitcoiners urging users to close accounts and divest from the financial institution.
MSCI Policy Proposal Intensifies Tensions
Frustration escalated further after MSCI proposed a rule that would exclude companies holding 50% or more of their assets in cryptocurrencies from its equity indexes.
JPMorgan referenced this proposed shift in a recent research note, amplifying concerns among Bitcoin supporters who view the move as another effort to marginalize firms with substantial BTC reserves.
Such exclusions could cut off passive capital flows from index-linked funds, potentially forcing affected companies to reduce their crypto holdings to regain eligibility—an action that could add downward pressure to digital asset prices.
The dispute underscores a widening divide between traditional financial institutions and corporate Bitcoin holders. As more legacy firms introduce BTC-related products, supporters of decentralized assets argue that structural advantages in traditional markets may be used to sideline existing crypto-native companies.
The controversy surrounding JPMorgan’s leveraged notes highlights a broader debate about fair competition, market influence, and the evolving role of institutional players in the Bitcoin ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.