JPMorgan Raises Bitcoin ETF Holdings 64% via Options Bet
JPMorgan Chase boosted its Bitcoin ETF holdings by 64% in the third quarter, adding 5.28 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) worth $343 million. The bank also purchased $68 million in call options and $133 million in put options to manage risks and capitalize on price swings. This move highlights growing institutional investment in Bitcoin ETFs despite recent market volatility and IBIT outflows. JPMorgan analysts cite reduced crypto leverage and rising gold volatility as drivers behind this shift. They forecast Bitcoin could reach $170,000 within 6–12 months. Bitcoin trades near $102,900. The expanded ETF stake and bullish price outlook signal renewed institutional confidence in regulated Bitcoin ETFs.
Bullish
The 64% increase in Bitcoin ETF holdings by JPMorgan, along with its use of call and put options, underscores strong institutional demand and sophisticated risk management strategies. In the short term, this is likely to support ETF inflows and stabilize Bitcoin prices amid volatility. Over the long term, the bank’s bullish $170,000 price forecast and reduced leverage in crypto derivatives may drive further institutional adoption, enhancing market liquidity and confidence. Historical precedents show that major financial institution involvement tends to have a positive effect on crypto assets by legitimizing them. As such, these developments are expected to exert upward pressure on Bitcoin’s price trajectory.