To allow its clients to bet on Bitcoin (BTC) rising while partially protecting themselves against a decline, JPMorgan is launching a structured product. Details on this new offering, built using BlackRock’s IBIT ETF.
JPMorgan Introduces a Structured Product Based on BlackRock’s Bitcoin ETF
In a filing with the Securities and Exchange Commission (SEC), JPMorgan detailed how a new structured product built around BlackRock’s IBIT spot Bitcoin ETF works.
First, let’s briefly review what structured products are. These are investment vehicles that provide exposure to the price of a stock, a commodity, or any other asset, with a guaranteed return under certain conditions and protection against price declines. If the underlying asset’s price falls below a certain threshold, the investor is protected; however, in exchange, they may not fully benefit from the asset’s upside potential.
To achieve this, fund managers use various financial instruments, such as options; however, the peace of mind that structured products can provide investors generally comes at the cost of substantial fees.
With regard to the JPMorgan structured product itself, various scenarios are possible depending on the price of the 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.
Conversely, if the price of an IBIT share is below the target threshold, the units of the structured product will remain outstanding until 2028. Consequently, it will be possible to amplify IBIT gains with a leverage of x1.5 and no upper limit, or to incur losses of up to 40% or more when these “notes” mature on December 20, 2028.
The table below shows the possible returns over this time horizon, based on an initial investment of $100, assuming the automatic early redemption option was not exercised in 2026:
Projected returns on JPMorgan’s structured product in 2028
In the event of a bear market on the horizon, we can see that JPMorgan is modeling its projections on historical BTC price cycles. And for good reason: the next halving is estimated to occur on April 10, 2028, and we could once again be in a bull market by that time.
In a report published on Thursday, JPMorgan analysts noted the institutionalization of Bitcoin:
The cryptocurrency sector is moving away from a venture-capital-style ecosystem and toward 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, thereby describing BTC as an “investment with strong growth potential over several years.”
