JPMorgan-Backed Bitcoin Loans Are Coming

JPMorgan-Backed Bitcoin Loans Are Coming

Last week, JPMorgan announced it will be accepting “pet rocks” as collateral for loans.

No, I’m not talking about the collectible Pet Rocks from the 1970s. I’m talking about bitcoin.

In March 2024, on national television, JPMorgan Chase CEO Jamie Dimon called bitcoin a “pet rock” that “does nothing.”

When asked about asset management giants like Fidelity and BlackRock getting involved with bitcoin, Dimon said he “doesn’t care.”

What a difference a year makes…

On June 4, JPMorgan, the largest bank in the world, announced it would allow its clients to use crypto-related assets as collateral for loans in the coming weeks.

You read that right. The biggest bank in the world is getting involved in crypto-backed loans.

JPMorgan will begin with BlackRock’s iShares Bitcoin Trust (IBIT) and add other crypto exchange-traded funds (ETFs) over time.

The policy will apply globally, spanning all client segments – from individual retail accounts to institutional investors.

Look, I could fill a phonebook with examples of Wall Street titans bad-mouthing bitcoin for years only to pivot and jump on the bandwagon. But this latest example from JPMorgan is especially important.

This is something Daily editor Teeka Tiwari has predicted for years. Back in July 2018, he appeared on a broadcast as a special guest of media personality Glenn Beck.

During the interview, watched by nearly 5 million people, Teeka said JPMorgan would eventually adopt bitcoin despite Dimon’s criticism. And he told Beck and his listeners bitcoin would go to $40,000... Back when it was trading a hair north of $7,000.

Today, bitcoin is above $105,000. And this news from JPMorgan suggests it will only go higher.

You see, every time one of these Wall Street stalwarts did an about-face, it sent bitcoin much higher.

One of the most notorious examples is BlackRock CEO Larry Fink. In 2017, Fink called bitcoin an “index for money launderers.”

But in 2023, Fink realized bitcoin would be one of the most valuable financial assets of the future.

He pivoted, calling bitcoin “digital gold,” and positioned BlackRock – the world’s largest asset manager with $10 trillion in assets under management – to profit from the inevitable mass adoption of bitcoin by launching IBIT.

That’s the same fund JPMorgan will start accepting as collateral for loans.

Since BlackRock went all-in on bitcoin, its price is up 325%.

Another example is in 2017, when Morgan Stanley CEO James Gorman said bitcoin “doesn’t quite deserve the attention it is getting” and “is punching above its weight.”

Four years later, Morgan Stanley became the first major U.S. bank to offer its clients access to bitcoin funds.

The point is this: Dimon isn’t the first Wall Street titan who got it absolutely wrong about bitcoin only to jump on the bandwagon later.

And recent history shows when Wall Street jumps on the bitcoin bandwagon in a big way, it sends crypto prices soaring.

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