Paul Johnson JPMorgan expands its stake in BlackRock’s iShares Bitcoin Trust (IBIT) by 64 percent, signaling renewed institutional confidence in Bitcoin, while drastically cutting its Ethereum exposure to near insignificance.
JPMorgan Boosts Bitcoin ETF Exposure as Ethereum Takes a Backseat
JPMorgan Chase is ramping up its commitment to Bitcoin ETFs in a major way. The banking giant has increased its exposure to BlackRock’s iShares Bitcoin Trust (IBIT) by a remarkable 64 percent in the third quarter, underscoring the growing institutional appetite for the leading digital asset. The bank now holds 5.28 million shares of IBIT, worth approximately 312 million dollars, marking one of the most significant Bitcoin ETF positions among major financial institutions.
IBIT captures the turning tide of Wall Street’s stance on Bitcoin as traditional finance moves deeper into crypto markets. JPMorgan’s position aligns with a renewed optimism across institutions that have begun diversifying from traditional assets into digital ones despite recent volatility.
While the bank’s holdings in BlackRock’s Bitcoin ETF surged, its Ethereum-related exposure dwindled to nearly nothing, revealing a clear preference for Bitcoin in its strategic allocation.
Institutional Confidence Shifts Toward Bitcoin
The increased exposure to IBIT positions JPMorgan alongside some of the largest Bitcoin ETF holders, although it still trails behind firms such as Goldman Sachs and Millennium Management. The move indicates a rising institutional consensus that Bitcoin remains the more reliable and promising asset amid fluctuating crypto market sentiment.
According to the bank’s latest SEC filing, the total value of its IBIT holdings stood at around 333 million dollars at the end of September before slightly cooling to 312 million dollars today. This rise mirrors a broader wave of confidence among institutional players who are looking beyond short-term corrections to capture long-term potential.
The timing of this surge in exposure is notable. It comes just weeks after the October 10 market liquidation that saw nearly 20 billion dollars wiped out following President Trump’s announcement of steep tariffs on Chinese imports. Despite the crash, Bitcoin ETF activity has been gradually rebounding, with intermittent inflows reflecting cautious optimism.
JPMorgan Analysts Predict Bitcoin Could Reach 170,000
Adding to the bullish narrative, JPMorgan’s analysts have set a striking target for Bitcoin’s future price trajectory. In a recent note, the bank forecasted that Bitcoin could climb toward 170,000 dollars within the next six to twelve months.
This projection is rooted in the asset’s improving volatility metrics compared to gold and a significant reduction in leveraged positions across the crypto derivatives market. Analysts highlighted that the wave of futures deleveraging appears to have run its course, setting the stage for a potential recovery led by spot market demand and ETF participation.
BlackRock’s IBIT has been a major driver of that institutional participation. On Thursday alone, IBIT accounted for 112 million dollars of net inflows, helping end a six-day streak of ETF outflows. The renewed momentum shows that even in a post-liquidation environment, institutional investors continue to view Bitcoin as a valuable strategic hedge.
IBIT continues to play a central role in this institutional trend, reflecting how traditional finance is increasingly leaning toward Bitcoin ETFs as a mainstream investment vehicle.
Ethereum Allocation Shrinks as Bitcoin Dominates
While JPMorgan doubled down on its Bitcoin ETF strategy, its Ethereum exposure tells a very different story. The bank’s holdings in BlackRock’s iShares Ethereum Trust have plummeted to a mere 66 shares, valued at roughly 1,700 dollars. This represents a steep decline from the 111 shares reported last quarter, effectively reducing its Ethereum allocation to pocket change.
Alongside this reduction, the bank disclosed small but offsetting call and put positions totaling 50,000 contracts each, suggesting that Ethereum’s role within JPMorgan’s broader crypto portfolio has become marginal at best.
The contrast between the robust IBIT position and the fading Ethereum stake highlights where institutional conviction currently lies. Bitcoin’s market dominance, liquidity profile, and clearer regulatory standing appear to be driving institutional capital away from Ethereum-based instruments.
Market data supports this trend. Following the October correction, Bitcoin ETFs have seen more consistent recovery in inflows compared to Ethereum products, which remain largely stagnant. This growing divergence reinforces Bitcoin’s perception as the preferred gateway asset for traditional investors entering the crypto economy.
A Defining Shift in Institutional Crypto Strategy
JPMorgan’s growing investment in BlackRock’s iShares Bitcoin Trust and its simultaneous pullback from Ethereum exposure represent a decisive pivot in institutional crypto strategy. For the world’s largest bank to expand its IBIT holdings by 64 percent in a single quarter sends a strong signal that Bitcoin’s appeal as a store of value and portfolio diversifier remains unmatched.
Even with lingering uncertainty in the broader market, the move suggests that institutional investors are preparing for a new phase of Bitcoin-led growth. With forecasts pointing toward a six-figure price target and volatility stabilizing, the current accumulation could mark the early stages of a deeper institutional re-entry into crypto assets.
As Ethereum’s share shrinks and Bitcoin ETFs dominate the spotlight, JPMorgan’s actions may serve as a preview of what to expect across Wall Street in the months ahead.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
