Jamie Dimon called Bitcoin a fraud. His bank just bought $343 million more.
JPMorgan disclosed holding 5.28 million shares of BlackRock’s Bitcoin ETF by September, a 64% jump from June. Strategic positioning.
JPMorgan didn’t just buy shares. They built a derivatives strategy around them.
The bank holds $68 million in call options and $133 million in put options on the same ETF. Sophisticated hedging that signals long-term commitment, not speculation.
The Prediction Behind the Position
JPMorgan analysts project Bitcoin could hit $170,000 within 6-12 months based on volatility-adjusted comparisons to gold. Their logic: Bitcoin’s $2.1 trillion market cap needs to rise 67% to match the $6.2 trillion in private-sector gold investment.
You don’t publish that analysis and ignore it internally.
JPMorgan increased exposure after October’s massive perpetual futures liquidation, the largest in crypto history. Their analysts noted deleveraging appears complete—they see the correction as a buying opportunity.
The Institutional Wave
JPMorgan isn’t leading. Goldman Sachs holds $1.27 billion in the same ETF, an 88% increase from the previous quarter.
Professional investors with over $100 million under management hold $27.4 billion in Bitcoin ETFs. 114% increase from last quarter.
Hedge funds account for 41% of institutional Bitcoin ETF holdings, surpassing investment advisors for the first time. Sovereign wealth funds from the Middle East have entered positions.
Capital allocators who move slowly and position deliberately.
What the Holdings Mean
JPMorgan’s position spans multiple divisions and client accounts, not just proprietary trading. The bank is enabling crypto exposure across its operation.
They’re building infrastructure to facilitate institutional access.
The average institutional portfolio weighting remains under 1%. Substantial room for allocation increases. Current positioning represents early-stage adoption, not market saturation.
Bitcoin trades near $103,000. JPMorgan’s analysts see $170,000 ahead. Their capital allocation confirms they’re positioning for that move.
The Timing Question
The bank that called Bitcoin a fraud allocated hundreds of millions to it. They built options strategies around that exposure, planning for volatility in both directions.
Their analysts published bullish price targets that justify current positioning. The contradiction between public rhetoric and private action disappeared.
Institutions are entering crypto markets.
The question is whether they’re early or you’re already late.
