JPMorgan's new Bitcoin product promises "unlimited" returns if BTC rises by 2028

Source: PortaldoBitcoin Original Title: JPMorgan's new Bitcoin product promises “unlimited” returns if BTC rises by 2028 Original Link: JPMorgan filed with regulators a leveraged product that would allow investors to bet on the future price of Bitcoin — and potentially gain “unlimited” returns if the price of BTC drops by the end of next year, but skyrockets by 2028.

A document filed on Monday with the SEC ( U.S. Securities and Exchange Commission ) by the bank shows that the proposed leveraged product, in the form of a structured note, would allow investors to bet big on the leading cryptocurrency through the iShares Bitcoin Trust ETF.

This financial instrument has some peculiarities. According to the prospectus, if the price of the Bitcoin ETF is equal to or greater than the set price by December 21, 2026, JPMorgan will redeem the notes, paying at least $160 per note ( with a price of $1,000 each). But if the price is below that threshold in a year, the securities will continue to be traded until 2028.

In that case — if the product is approved by the SEC, of course — investors will be able to achieve a return of 1.5x on any gains that the cryptocurrency has until 2028, potentially paving the way for huge rewards. JPMorgan classified the potential return as “unlimited,” meaning that if Bitcoin reaches new highs by 2028 ( which means that the ETF's stock price will follow the rise ), the amplified gains could be truly substantial.

But if the price of Bitcoin drops dramatically — 40% or more — investors will lose a substantial part of their initial investment, according to the document. High risk, high reward… or loss.

“Bitcoin has historically shown high price volatility compared to more traditional asset classes and has experienced extreme volatility in recent periods, which may continue to do so, potentially increasing the fund's volatility,” the document notes.

Bloomberg's ETF analyst, James Seyffart, said that “it's very common for banks to do this kind of thing with practically any asset you can imagine.”

The iShares Bitcoin Trust is the most popular Bitcoin ETF approved by the SEC and authorized to start trading last year. The fund currently manages $69 billion in assets.

JPMorgan's product is the latest in a long line of leveraged funds tied to the performance of digital currencies and tokens.

In recent years, ETFs that hold debt to amplify their position have arrived in the markets. With these products, returns for investors can be greater than the gains of the tracked asset — but losses can also accumulate.

JPMorgan is the largest bank in the US and has a complex history with digital assets. Its CEO, Jamie Dimon, has long criticized Bitcoin but praises blockchain — the underlying technology that powers Bitcoin, Ethereum, and other cryptocurrencies.

In recent years, the bank has become more open to digital assets and, this month, launched a dollar-denominated digital deposit token using the Base network of a blockchain platform.