JPMorgan Faces Backlash Over Bitcoin-Backed Notes as Critics Allege Market Manipulation
Bitcoin advocates are calling for a boycott of JPMorgan after the bank filed to launch Bitcoin-linked structured notes, with critics alleging coordinated efforts to undermine corporate Bitcoin treasury companies.
JPMorgan is facing renewed criticism from the Bitcoin community following its application to launch Bitcoin-backed structured notes, with some alleging the product positions the Wall Street giant in direct competition with corporate Bitcoin treasury companies.
Bitcoin advocate Simon Dixon warned that JPMorgan's notes could "trigger margin calls on Bitcoin-backed loans" and "force selling pressure from Bitcoin treasury companies in down markets," allowing traditional financial institutions to position themselves advantageously before retail investors.
The controversy intensified after JPMorgan analysts issued a research note suggesting MSCI may remove MicroStrategy (MSTR) from its indexes, with a decision expected by January 15. MicroStrategy is currently the largest corporate Bitcoin holder globally.
Critics on social media have alleged a coordinated effort, pointing to JPMorgan's recent actions including selling MSTR shares, increasing margin requirements from 50% to 95%, and advocating for the company's index exclusion. Some Bitcoin advocates, including analyst Ran Neuner, claim the moves represent a synchronized attempt by JPMorgan, MSCI, and political players to pressure MicroStrategy and the broader crypto ecosystem.
Bitcoiners launched boycott calls against the financial institution last week in response to these developments.
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