Urgent Crypto News: JPMorgan Accepts ETFs, Bitcoin Supply Squeeze Looms
Looking for the latest insights on today’s major cryptocurrency movements? Stay ahead with our daily digest covering the most important developments impacting the market, including shifts in Bitcoin price, blockchain innovations, DeFi, NFTs, Web3, and crypto regulation. Here’s a quick rundown of the key crypto news you need to know right now.
JPMorgan Embraces Crypto ETFs for Loans
In a significant move, JPMorgan, the largest bank in the U.S., is reportedly preparing to allow its trading and wealth-management clients to use crypto-linked assets as collateral for loans. This development, highlighted in recent crypto news reports, indicates growing acceptance of digital assets within traditional finance.
- JPMorgan plans to accept financing against crypto ETFs within weeks.
- The initiative will start with BlackRock’s iShares Bitcoin Trust (IBIT), the largest US spot Bitcoin ETF.
- The bank will also consider clients’ overall crypto holdings when assessing net worth for loan eligibility.
This isn’t JPMorgan’s first foray into crypto. They launched the JPM Coin stablecoin in 2020 and reported holding shares in various spot Bitcoin ETFs earlier this year. Accepting crypto ETFs as collateral signals increasing institutional comfort and integration of digital assets into mainstream financial products.
Is a Bitcoin Supply Squeeze Coming?
According to Sygnum Bank’s latest outlook, the circulating Bitcoin supply is tightening rapidly, potentially setting the stage for significant price increases. This analysis, crucial for understanding potential movements in the Bitcoin price, points to a dramatic reduction in available BTC.
Sygnum analysts noted that Bitcoin’s liquid supply has decreased by 30% over the past 18 months. What’s driving this trend?
- Institutional adoption is a major factor.
- The rise of Bitcoin acquisition vehicles, such as ETFs and corporate buyers, is withdrawing coins from exchanges.
- Bitcoin balances on exchanges have fallen by about 1 million BTC since late 2023.
This shrinking Bitcoin supply, coupled with increasing demand from both institutional and retail investors, creates conditions ripe for demand shocks and upside volatility. Geopolitical and fiscal uncertainties, particularly concerning the US dollar and national debt, are also pushing investors towards crypto markets.
Adding to demand, several US states are considering or have passed legislation permitting Bitcoin reserves. International interest is also growing, with countries like Pakistan and political parties in the UK exploring similar strategies.
Confusion Surrounds Trump-Linked Crypto Wallet
A recent announcement about a Trump-branded crypto wallet caused a stir, quickly followed by confusion. A business linked to the Trump Organization partnered with NFT marketplace Magic Eden to launch the ‘Official $TRUMP Wallet by President Trump’.
However, the situation became muddled when President Donald Trump’s sons, Eric, Barron, and Donald Trump Jr., publicly denied knowledge or involvement from the Trump Organization. Donald Trump Jr. later mentioned their family’s own platform, World Liberty Financial, would launch their official wallet soon.
This incident highlights the complexities and potential communication breakdowns in the intersection of politics, branding, and the fast-moving world of crypto. It underscores the importance of clear communication and verification in the digital asset space.
Summary
Today’s crypto news brought several key developments to the forefront. JPMorgan’s move to accept crypto ETFs as loan collateral signals increasing institutional integration. Sygnum Bank’s warning about a tightening Bitcoin supply suggests potential for significant Bitcoin price movements. Meanwhile, a confusing situation surrounding a Trump-linked crypto wallet highlights the dynamic and sometimes unpredictable nature of the market. Staying informed on these trends is essential for navigating the evolving crypto landscape.
