JPMorgan disclosed a sharp increase in its holdings of the Bitcoin ETF IBIT, signaling rising institutional interest in cryptocurrency exposure.
According to 13F filings, the bank reported holding 5,284,190 shares of IBIT, valued at $343 million as of September 30.
This marks a 64% increase from its previous disclosure of 3,217,056 shares as of June.
The filing also revealed that JPMorgan holds IBIT options, including $68 million in call options and $133 million in puts. 13F filings aggregate holdings across all bank divisions, including high-net-worth clients, meaning these positions may not be limited to the bank’s own balance sheet.
Bitcoin itself has remained volatile in recent months, hovering just above $100,000, but institutional flows like JPMorgan’s ETF holdings underscore confidence in its long-term prospects.
The bank’s sizable purchase also coincides with renewed interest in regulated investment vehicles, such as ETFs.
JPMorgan’s bitcoin embrace
JPMorgan analysts recently said that Bitcoin now appears undervalued relative to gold after a sharp October sell-off pushed its price down more than 20% from its recent record high of $126,000.
The decline was driven by leveraged liquidations in the futures market and market anxiety following a $128 million Balancer hack.
According to analyst Nikolaos Panigirtzoglou of JPMorgan, the ratio of open interest in perpetual futures to Bitcoin’s market cap has since normalized, signaling that most excess leverage has been flushed out.
The bank’s analysis also shows Bitcoin is trading at a discount to gold when adjusting for volatility. As gold prices climbed above $4,000 per ounce, its volatility rose, while Bitcoin’s has eased.
To reach parity with gold’s private-sector investment value on a risk-adjusted basis, analysts estimate Bitcoin would need to rise toward $170,000 — roughly two-thirds higher than recent levels.
JPMorgan forecasts “significant upside” over the next six to twelve months if current conditions persist, reinforcing the case for Bitcoin as an alternative or accomplice to gold as a risk-averse asset.
At the same time, JPMorgan is preparing to let institutional clients use Bitcoin as collateral for loans by the end of 2025, expanding beyond its current acceptance of crypto-linked ETFs.
At the time of writing, Bitcoin is price near $100,000 at $101,290 per Bitcoin Magazine Pro data. Earlier this quarter in October, Bitcoin hit an all-time high above $126,000. The price is down roughly 20% from all-time highs.