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Thursday Nov 27 2025 22:00
2 min
JPMorgan's proposal to launch Bitcoin (BTC)-backed notes has ignited controversy within the Bitcoin community, particularly among supporters of MicroStrategy, the largest corporate holder of BTC. Critics accuse the bank of spreading fear, uncertainty, and doubt (FUD) about MicroStrategy and other crypto treasury firms.
JPMorgan's proposed notes are a leveraged investment product tied to the price of Bitcoin. The product aims to amplify gains (or losses) by a factor of 1.5 until December 2028. The notes are slated for a December 2025 launch, according to an SEC filing.
Community Backlash
The move has drawn sharp criticism from the Bitcoin community, with many arguing that JPMorgan is now a direct competitor to BTC treasury companies and has an incentive to marginalize firms like MicroStrategy to promote its own structured financial product. "Saylor opened the door to the $300 trillion bond market and $145 trillion fixed income market. Now, JP Morgan is launching Bitcoin-backed bonds to compete," said one X user. "The same institutions attacking MSTR (MicroStrategy's ticker symbol) are copying the strategy."
Bitcoin advocate Simon Dixon also noted that JPMorgan's upcoming product exists "to trigger margin calls on Bitcoin-backed loans," claiming it will "force sell pressure from Bitcoin treasury companies in down markets."
Calls for Boycott
On X, crypto enthusiasts and MicroStrategy supporters are now calling for a boycott of JPMorgan, encouraging fellow Bitcoiners to close accounts at the financial services giant and sell any shares they may hold in the company.
MSCI Rule Change Proposal Fuels Debate
The backlash against JPMorgan intensified when MSCI, formerly Morgan Stanley Capital International, a company managing stock indexes and setting index inclusion criteria, proposed a policy shift excluding treasury companies from its products.
The proposed change, scheduled to take effect in January, bars crypto treasury companies with 50% or more of their assets in cryptocurrencies from index inclusion.
JPMorgan shared the proposed policy shift in a November research note, drawing criticism from the BTC community and MicroStrategy investors. Excluding crypto treasury companies from stock indexes deprives them of passive capital inflows and could force these companies to sell off their crypto holdings to qualify for index inclusion, potentially driving asset prices down.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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