JPMorgan announces first specific investment product in bitcoin

Source: Exame Original Title: JPMorgan announces 1st specific investment product in bitcoin Original Link: JPMorgan intends to launch its first investment product specifically aimed at bitcoin. The product will be a structured note, which combines investment logic in securities and the futures market. The bank has filed a request with the SEC (Securities and Exchange Commission) to facilitate the launch in December of this year.

The structured note that will be offered by JPMorgan provides a return for investors based on a calculation formula that takes into account the performance of the cryptocurrency until 2028. However, the returns will vary depending on the behavior of the asset.

However, the structured note will not specifically focus on the price of bitcoin, but rather on the price of the ETF of the cryptocurrency offered by BlackRock, the IBIT. As the price of the fund is linked to the price of the asset itself, in practice, the product offers exposure to the cryptocurrency.

The return for investors will depend on two scenarios, based on a future price set by JPMorgan considering the value of the ETF on December 18, 2025, or on the nearest date, depending on the speed of the SEC to approve the new product.

Considering the defined value, the product has set two evaluation moments: in December 2026 and in December 2028. If bitcoin has appreciated compared to the price defined in the previous year, the acquired structured note will be settled, with a return calculated based on the variation of bitcoin and a minimum guaranteed gain of 16%.

However, the return will be even greater if the cryptocurrency falls next year. The reason is that the structured note will remain open until 2028, and all the appreciation of the asset during this period will be used as a reference for calculating the return for investors with the settlement in December 2028.

If Bitcoin reaches this moment with a value above the future price of the cryptocurrency, investors will have a return equivalent to 1.5 times the amount invested. However, if the asset ends 2028 down, they will receive the initial invested amount, provided that the loss is less than 30%.

In practice, the new product would maximize investor returns in the next three years if the cryptocurrency appreciates, guarantee a fixed profit if the asset remains stable until the end of 2026, and offer protection for investors if the cryptocurrency falls by less than 30% between 2025 and 2028.

The order represents another step in JPMorgan's changing stance towards bitcoin, despite the criticisms of the asset from the bank's leadership. The bank has already stated that it will offer direct investments in the cryptocurrency to its investors starting in 2026.