To allow its clients to bet on the rise of Bitcoin (BTC) while partially protecting themselves from a decline, JPMorgan is launching a structured product. Details on this new product built with BlackRock’s IBIT ETF.
JPMorgan presents a structured product based on BlackRock’s Bitcoin ETF
In a filing with the Securities and Exchange Commission (SEC), JPMorgan detailed the workings of a new structured product built around BlackRock’s IBIT spot Bitcoin ETF.
First, let’s briefly review structured products. These are investment vehicles that provide exposure to the price of a stock, commodity, or other asset, with a guaranteed return under certain conditions and protection against declines. If the underlying asset falls below a certain limit, the investor is protected, but in return, they may not fully benefit from the upside potential of that asset.
To do this, fund managers use various financial tools, such as options, but the peace of mind that structured products can bring to investors usually comes at the price of generous fees.
With regard to JPMorgan’s structured product itself, various scenarios are possible depending on the price of IBIT over the coming years.
For example, if on December 21, 2026, the price of the IBIT ETF is greater than or equal to a price to be determined shortly, the units (valued at $1,000 each) of this structured product will be automatically redeemed with a return of 16%, or $160 per unit.
However, if the price of an IBIT share is below the target threshold, the shares of the structured product will remain valid until 2028. From then on, it will be possible to multiply IBIT gains with a leverage of x1.5 and no maximum limit, or to incur similar losses of more than 40% when these “notes” mature on December 20, 2028.
The table below shows the possible performances over this period, with an initial investment of $100, in the event that the automatic early redemption option is not exercised in 2026:
In the event of a bear market looming on the horizon, we can see that JPMorgan is modeling its predictions on historical BTC price cycles. And with good reason, as the next halving is estimated to occur on April 10, 2028, at which point we could once again be in a bull market.
In a report published on Thursday, JPMorgan analysts noted the institutionalization of Bitcoin:
The cryptocurrency sector is moving away from a venture capital-type ecosystem and closer to a traditional tradable macroeconomic asset class, supported by institutional liquidity rather than retail speculation.
Furthermore, the same report estimates a long-term price target of $240,000, describing BTC as an “investment with strong growth potential over several years.”
