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Bitcoin’s price surged past $90,000 on Wednesday, marking a thrilling continuation of a rally driven by growing institutional interest and exciting new crypto products from Wall Street.
This upward trend was sparked by recent updates revealing that BlackRock is boosting its stake in its own spot Bitcoin ETF. Meanwhile, JPMorgan is showcasing a daring new structured note directly linked to BlackRock’s IBIT fund.
After dipping to 24-hour lows of $86,129, Bitcoin bounced back above $90,300, continuing the exciting upswing we’ve seen in this fourth quarter.
According to BlackRock’s latest filing, the Strategic Income Opportunities Portfolio now holds 2,397,423 shares of IBIT, valued at a hefty $155.8 million as of September 30—a 14% increase from June!
This steady increase shows how the world’s biggest asset manager is positioning itself further into Bitcoin-linked investments.
As interest for structured crypto investments rises among major banks, JPMorgan’s newly proposed structured note offers institutional clients a chance to speculate on Bitcoin’s future prices via IBIT, currently holding nearly $70 billion in assets.
The product is both unique and bold! It sets a price for IBIT next month. If IBIT hits or exceeds that price in a year, the note is automatically called, and investors reap a fixed 16% return.
However, if IBIT trades below the target price after a year, investors stay in until 2028. If by then IBIT exceeds JPMorgan’s next target price, they could earn 1.5 times their investment, with no cap on potential gains if Bitcoin skyrockets!
And there’s good news for those worried about risks: if IBIT finishes 2028 down by no more than 30%, investors get their full principal back. But, if it drops over 30%, losses will align with IBIT’s decline.
This structure merges a bond-like setup with derivatives exposure, fitting nicely within FINRA’s “structured note” category. It combines typical securities with options-based payouts tied to BlackRock’s Bitcoin ETF.
The sweet deal for institutions is clear: reliable returns if Bitcoin’s price levels off next year, amplified upside through 2028, and limited long-term risk. However, it’s a trade-off: no interest payments, no FDIC insurance, and the chance of losing most or all principal.
Credit goes to The Block for assisting in this article.
Bitcoin Price Volatility
JPMorgan isn’t shy about the stakes involved. Their prospectus warns that investors “should be prepared to lose a substantial part or all of their principal amount at maturity.” They also note that Bitcoin’s volatility could be extreme, and the paper remains an unsecured obligation of the bank.
This latest move by the bank reflects an ongoing change in Wall Street’s attitude towards Bitcoin. CEO Jamie Dimon once ridiculed it as “worse than tulip bulbs.” Now, JPMorgan is crafting products based on the digital asset’s future.
Meanwhile, Morgan Stanley is exploring
Analysts suggest these products signal a revival in the structured-notes market, which is bouncing back after a decade-long slump following the Lehman Brothers collapse.
Bitcoin’s price has dropped over 30% since its all-time high in October, currently hovering around $87,000 amid a nearly two-month market uncertainty. Although some mid-tier whale wallets holding over 100 BTC are on the rise—hinting at bargain hunting—the larger whale accounts are selling off, which isn’t helping the spot demand.
Analysts warn that the crucial support range of $80,000–$83,000 is under pressure repeatedly, and Citi has observed that the market lacks the necessary inflows to stabilize prices.
As of now, Bitcoin’s price stands at $90,049.
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