"The surge followed fresh disclosures showing BlackRock increasing its exposure to its own spot Bitcoin ETF, and JPMorgan pitching a complex, high-stakes structured note tied directly to BlackRock's IBIT fund. Bitcoin price touched 24-hour lows of $86,129 before rebounding above $90,300, continuing a volatile upswing that has defined the fourth quarter. BlackRock's latest regulatory filing shows the Strategic Income Opportunities Portfolio now holds 2,397,423 shares of IBIT, valued at $155.8 million as of September 30."
"The product is unusual - and aggressive. The note sets a price for IBIT next month. If, one year from now, IBIT trades at or above that price, the note is automatically called and investors collect a fixed 16% return. If IBIT trades below the set level in a year, investors stay in the product until 2028. Should IBIT exceed JPMorgan's next target price by then, investors earn 1.5x their investment with no upside cap. If the Bitcoin price skyrockets, the payouts follow."
Institutional demand and new Wall Street-engineered products drove Bitcoin past $90,000 amid volatile fourth-quarter trading. BlackRock increased internal exposure to its IBIT spot Bitcoin ETF, with the Strategic Income Opportunities Portfolio holding 2,397,423 IBIT shares valued at $155.8 million as of September 30, a 14% rise since June. Major banks are responding with structured crypto-linked investments for institutional clients. JPMorgan proposed a derivative-style note tied to IBIT that offers a one-year automatic call with a fixed 16% return if targets are met, extended exposure through 2028 with 1.5x upside potential and principal protection within a 30% decline threshold.
Read at Bitcoin Magazine
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