JPMorgan Prepares Structured Notes Linked to BlackRock’s IBIT With Defined Return Parameters

JPMorgan Chase is preparing a structured note tied to BlackRock’s iShares Bitcoin Trust (IBIT), according to a recent proposal.

The product is intended to give institutional investors exposure to the ETF through predefined return targets and protection features.

Bloomberg analyst Eric Balchunas said the offering is a Bitcoin-linked structured note built around IBIT that could deliver significant upside in 2028 while incorporating downside parameters.

Under the terms in the filing, JPMorgan will set an initial target price for IBIT next month.

If, about one year from now, IBIT trades at or above that level, the notes will be called and investors will receive a minimum 16% return.

If the ETF is below that threshold, the notes will extend through 2028. Should IBIT exceed JPMorgan’s second benchmark by the end of that year, investors would receive 1.5 times the ETF’s gains, without a stated cap.

The notes also include conditional principal protection. If IBIT is down in 2028 but by no more than 30%, investors will recover their full principal. If the decline exceeds 30%, losses will match the ETF’s drop.

Balchunas noted that structured notes of this type are widely used across asset classes. IBIT remains the largest U.S. spot Bitcoin ETF, with more than $69 billion in assets under management.

The filing aligns with a broader trend of banks creating derivative or leveraged products tied to digital assets and highlights both the note’s structured return design and the volatility associated with Bitcoin.

The proposal also comes against the backdrop of JPMorgan’s previously skeptical stance toward Bitcoin.

In 2017, the bank said employees trading Bitcoin could face termination, and CEO Jamie Dimon was publicly critical of the asset.

Since then, the firm has expanded several Bitcoin and digital-asset-related services, marking a notable shift from its earlier position.