JPMorgan's recent filing for leveraged Bitcoin-backed notes has sparked backlash from Bitcoin advocates, who argue that the bank's move could distort the market to the detriment of treasury firms like Strategy. The notes, which are expected to launch in late 2025, will provide investors with 1.5x exposure to Bitcoin, posing a competitive challenge to companies that hold Bitcoin directly.
Simultaneously, MSCI's proposed rule to exclude firms with significant crypto holdings from its indexes is adding pressure on treasury companies to reduce their Bitcoin exposure. This rule could lead to forced selling during periods of market volatility, further impacting firms heavily invested in cryptocurrencies.
JPMorgan's Leveraged Bitcoin Notes Face Criticism Amid MSCI Rule Concerns
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