JPMorgan proposes structured note products for Bitcoin, which could yield substantial returns if BTC soars by 2028

JPMorgan has submitted a proposal to regulators for a leveraged structured note product linked to the iShares Bitcoin Trust (IBIT) ETF under BlackRock. This product will allow investors to bet on the future price of Bitcoin.

According to the prospectus, if by December 21, 2026, the price of the IBIT ETF is equal to or greater than the preset price, JPMorgan will redeem the note early, with each note (priced at $1,000) paying at least $160. However, if the price is below the preset price at that time, the note will continue to be held until 2028. In this case (if approved by the SEC), investors will be able to receive a 1.5 times return on the gains from the increase in Bitcoin's price, potentially leading to "unlimited" massive returns. This means that if Bitcoin skyrockets by 2028, the amplified gains could be substantial. However, the document also notes that if the price of Bitcoin falls significantly (40% or more), investors will lose most of their initial investment. JPMorgan warns that Bitcoin has historically exhibited higher price volatility compared to traditional asset classes and may continue to experience extreme fluctuations. Bloomberg ETF analyst James Seyffart stated that the bank's operations on "any asset you can think of" are "very common."