Bitcoin Community Criticizes JPMorgan's Bitcoin-Backed Notes

JPMorgan Faces Backlash Over Bitcoin-Backed Notes

The Bitcoin community, along with supporters of Strategy, the largest corporate holder of Bitcoin (BTC), is voicing concerns over JPMorgan's recently announced Bitcoin-backed notes. Critics argue that the financial giant is spreading fear, uncertainty, and doubt about Strategy and similar crypto treasury firms.

Details of JPMorgan's Investment Product

JPMorgan's new offering is a leveraged investment product linked to the Bitcoin price, allowing investors to experience 1.5 times the gains or losses until December 2028, with an official launch slated for December 2025 according to a recent SEC filing.

Community Criticism and Concerns

Critics claim JPMorgan's entry into the market positions it as a direct competitor to Bitcoin treasury firms, potentially incentivizing the bank to marginalize these companies to promote its own financial products. Bitcoin advocate Simon Dixon highlighted concerns about triggering margin calls on Bitcoin-backed loans, potentially increasing sell pressure on Bitcoin during market downturns.

Call for Boycott

In response, some Bitcoin enthusiasts are advocating for a boycott of JPMorgan, encouraging others to close accounts and divest from the company's shares.

MSCI Rule Change Sparks Further Controversy

The controversy intensified when MSCI proposed a policy change excluding crypto treasury companies from its indexes, which could compel these firms to sell crypto holdings to qualify for inclusion, further depressing asset prices.

Related topics include the potential impacts of such financial maneuvers on the broader crypto market and the strategic responses from major stakeholders in the industry.