John Deaton Calls Out JPMorgan’s Bitcoin Hypocrisy as Bank Launches BTC-Linked Note
Veteran attorney and Bitcoin advocate John Deaton publicly criticized JPMorgan and CEO Jamie Dimon after the bank began offering an institutional structured product tied to BlackRock’s Bitcoin ETF (IBIT). Deaton highlighted Dimon’s prior anti-Bitcoin statements and accused the bank of hypocrisy, noting JPMorgan’s history of large fines and controversial ties while it quietly builds Bitcoin exposure. JPMorgan’s product offers institutional clients early termination with a guaranteed 16% return if IBIT meets a set price within a year, extends to 2028 if not, and can pay 1.5× the principal if a higher price is hit by 2028; it also provides full principal protection if IBIT falls up to 30% by 2028, with losses beyond that absorbed by investors. The announcement coincided with a near 4% intraday Bitcoin rally and BTC trading near $91,400, suggesting renewed investor confidence as banks and asset managers roll out BTC-linked offerings. For traders: the story underscores growing institutional productization of Bitcoin, potential liquidity and demand support from structured notes and ETFs, and the ongoing narrative divergence between public criticism by some executives and institutional accumulation.
Bullish
The news is bullish for Bitcoin. JPMorgan launching a Bitcoin-linked structured product tied to IBIT signals continued institutional demand and product development, which historically supports price discovery and liquidity. Similar past events — e.g., banks and asset managers rolling out BTC-related products or ETFs — have correlated with inflows and positive price moves as institutions provide new on-ramps and larger capital pools. The product’s design (early exit with a guaranteed return, upside multiplier, partial principal protection) may attract conservative institutional capital that previously sat on the sidelines, increasing buy-side pressure. Short-term, the announcement coincided with a ~4% BTC uptick, likely driven by positioning and sentiment; traders should expect volatility around product rollouts and price checkpoints. Long-term, repeated institution-led offerings and ETF-linked instruments tend to deepen market structure, raise baseline demand, and reduce volatility over time as more capital allocates to Bitcoin. Risks remain: concentrated issuance, macro shocks, or regulatory actions can negate the positive effect, and the product’s principal protection limits may cap institutional risk tolerance until performance is proven.