JPMorgan's Bitcoin Structured Product Sparks Controversy in Crypto Community

Source: CoinTribune Original Title: JPMorgan’s Bitcoin Product Ignites Crypto Community Original Link:

The Controversy Unfolds

JPMorgan’s announcement of a new structured product linked to bitcoin price has stirred significant criticism within the crypto community. These are 1.5× leveraged notes correlated to BTC performance, with maturity set to December 2028. This initiative is viewed as contradictory by many observers, as JPMorgan has historically been critical of bitcoin.

The outrage intensifies because some perceive this as a targeted attack against companies like certain prominent bitcoin treasury holders. “The same institutions attacking these companies are now adopting their strategy,” a common sentiment echoed across social media platforms.

Key Points of Contention

The criticisms have focused on several key aspects:

• Problematic leverage: The product would allow institutional players to bet on BTC volatility without real commitment to the underlying asset

• Domino risk: Some fear the tool could amplify market movements during bearish phases, generating increased selling pressure

• Indirect targeting: Several voices suggest the goal is to trigger margin calls on BTC-backed loans held by major companies with significant bitcoin holdings

• Calls for retaliation: In response, influential members of the crypto sphere are calling to close their accounts at JPMorgan and divest from its shares

According to critics, these financial instruments do not exist to diversify BTC exposure but to exert artificial selling pressure during market downturns. This perception fuels distrust in an ecosystem already sensitive to attempts to regulate or exclude Bitcoin strategies from traditional finance.

A Systemic Threat to Crypto Treasuries?

Beyond the structured product itself, another concern has emerged: JPMorgan’s involvement in a proposal to reform MSCI indexes. This would aim to exclude companies whose 50% or more of assets are denominated in cryptocurrencies—a measure that would directly impact companies with significant bitcoin accumulation strategies.

According to internal analysis, this exclusion could lead to significant passive outflows, with estimated impacts reaching $11.6 billion if extended to all affected indexes.

Defenders of bitcoin treasury strategies argue that the attempt to exclude amounts to punishing companies for their transparent and consistent treasury management. This controversy raises a fundamental question: is there an attempt to disqualify bitcoin-friendly companies from major indexes, risking market imbalances?

The Deeper Divide

This case reveals a deep split between traditional financial institutions and advocates of decentralized finance. Beyond specific company cases, it questions the future of companies exposed to bitcoin in an ecosystem where power and influence dynamics increasingly shape the rules of the game.