JPMorgan has disclosed a sharp increase in its holdings of the Bitcoin ETF IBIT, signaling rising institutional interest in cryptocurrency exposure. According to recent 13F filings, the bank reported holding 5,284,190 shares of IBIT, valued at $343 million as of September 30. This marks a 64% increase from its previous disclosure of 3,217,056 shares as of June.
The filings also revealed that JPMorgan holds IBIT options, including $68 million in call options and $133 million in put options. It is important to note that 13F filings aggregate holdings across all bank divisions, including those of high-net-worth clients. This means these positions may not be limited to the bank’s own balance sheet.
Bitcoin itself has remained volatile in recent months, hovering just above $100,000. However, institutional flows like JPMorgan’s growing ETF holdings underscore confidence in the cryptocurrency’s long-term prospects. The bank’s sizable purchase coincides with renewed interest in regulated investment vehicles such as ETFs.
### JPMorgan’s Bitcoin Embrace
JPMorgan analysts recently stated that Bitcoin now appears undervalued relative to gold. This follows a sharp sell-off in October, which pushed Bitcoin’s price down more than 20% from its recent record high of $126,000. The decline was driven by leveraged liquidations in the futures market and market anxiety after a $128 million Balancer hack.
According to JPMorgan analyst Nikolaos Panigirtzoglou, the ratio of open interest in perpetual futures to Bitcoin’s market cap has since normalized, indicating that most excess leverage has been flushed out. The bank’s analysis also shows that Bitcoin is trading at a discount to gold when adjusted for volatility.
As gold prices climbed above $4,000 per ounce, its volatility also increased, while Bitcoin’s volatility has eased. To reach parity with gold’s private-sector investment value on a risk-adjusted basis, analysts estimate Bitcoin would need to rise toward $170,000 — roughly two-thirds higher than recent levels.
JPMorgan forecasts “significant upside” over the next six to twelve months if current market conditions persist. This reinforces the case for Bitcoin as either an alternative to gold or a complementary asset for risk-averse investors.
### Expanding Crypto Services
In addition to its growing Bitcoin ETF holdings, JPMorgan is preparing to allow institutional clients to use Bitcoin as collateral for loans by the end of 2025. This move would expand the bank’s current acceptance of crypto-linked ETFs, signaling a broader embrace of cryptocurrency within its financial services.
At the time of writing, Bitcoin is priced near $101,290, according to Bitcoin Magazine Pro data. Earlier this quarter in October, Bitcoin hit an all-time high above $126,000 but has since dropped roughly 20% from those record highs.
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JPMorgan’s increased exposure to Bitcoin through ETFs, combined with bullish price forecasts and expanded institutional services, underscores a growing acceptance of cryptocurrency as a key asset class in the evolving financial landscape.
https://bitcoinethereumnews.com/bitcoin/jpmorgan-just-bought-64-more-bitcoin-etf-holdings/