JPMorgan Chase has issued the first structured note on the market for spot bitcoin ETFs

Key points:

• JPMorgan has issued a structured note whose yield is linked to the performance of BlackRock's spot Bitcoin ETF and includes partial capital protection.
• BTC-based structured products are seeing growing interest from institutional investors and are driving capital inflows into the crypto market.

JPMorgan Chase has issued a structured note whose yield depends on the movement of the price of BlackRock’s spot bitcoin ETF (IBIT). The notes have a minimum fixed yield of 16% if IBIT exceeds certain price thresholds in a year. If this condition is met, the note is automatically redeemed (autocall), and the investor receives a coupon and a return of capital.

At the same time, the JPMorgan Chase note offers built-in partial capital protection against volatility. If IBIT falls, the investor only incurs losses if the decline exceeds 30% — up to this point, losses are offset by the structure.

According to Bloomberg, investors will receive the highest returns if the price of BTC remains below a certain level in 2026 but rises sharply by the end of 2028. Thus, structured notes from JPMorgan Chase offer a bet on a repeat of the traditional four-year cycle in the crypto market.

Why investors need structured note for bitcoin funds

The main buyers of structured products are family offices, large private banking clients, and funds that need exposure to assets with a specific risk/return ratio.

The volume of structured products worldwide is growing rapidly. According to the SRP report, in 2024, sales of such products grew by 37,3% over the year and reached $1,4 trillion. The growth of the market shows that institutional and wealthy private investors see value in them: they are looking for flexible, customized risk-return structures, especially in conditions of market volatility and uncertainty.

Structured products based on spot bitcoin ETFs are boosting capital inflows into the crypto market and mark a new phase of institutional adoption, experts say. Bitget CMO Ignacio Franco noted:

“We view JP Morgan’s new structured product as a revolutionary catalyst to democratize crypto exposure. It provides investors with access to bitcoin through an ETF with a 1.5x leverage and unlimited upside potential until 2028. This type of regulated instrument issued by a bank marks a major turning point in how traditional finance approaches digital assets, accelerating institutional adoption and attracting new capital to the market.”

The appearance of such an instrument in the product line of a large bank indicates that interest in bitcoin among institutional clients has become high and stable enough to create complex banking products for it, and bitcoin itself is finally entering the realm of traditional finance as a full-fledged, “normalized” investment asset, adds Technobit CEO Alexander Peresichan.

According to both experts, the emergence of structured products based on bitcoin indicates the maturation of cryptocurrencies as a full-fledged asset class and forms a solid foundation for further growth of the crypto market.