The Bitcoin community and supporters of Strategy, the world’s largest corporate holder of Bitcoin (BTC), have expressed strong criticism of JPMorgan Chase following the bank’s announcement of new Bitcoin-backed notes. Many accuse JPMorgan of spreading fear, uncertainty, and doubt (FUD) about corporate crypto treasuries while positioning itself as a competitor in the space.

JPMorgan’s Bitcoin-Linked Notes Draw Scrutiny

JPMorgan plans to launch leveraged Bitcoin-backed notes in December 2025, according to a recent SEC filing. The structured product tracks Bitcoin’s price while amplifying returns — giving investors 1.5x exposure to BTC gains or losses through December 2028.

Critics argue that the bank has an incentive to marginalize corporate BTC holders like Strategy to promote its own product. Supporters of Strategy contend that JPMorgan’s move directly competes with the treasury strategies pioneered by corporate Bitcoin adopters, creating a conflict of interest.

“Saylor opened the door to the $300 trillion bond market and $145 trillion fixed income market. Now, JPMorgan is launching Bitcoin-backed bonds to compete,” commented one Bitcoiner on X (formerly Twitter). Bitcoin advocate Simon Dixon added that the product is designed “to trigger margin calls on Bitcoin-backed loans,” potentially forcing sell pressure from corporate Bitcoin treasuries during market downturns.

In response, some members of the Bitcoin community have called for a boycott of JPMorgan, urging people to close accounts and sell shares in the company as a show of support for corporate BTC holders.

MSCI Policy Proposal Adds to Controversy

The controversy intensified after MSCI, the index provider formerly known as Morgan Stanley Capital International, proposed a new rule set to take effect in January. The policy would exclude crypto treasury companies from MSCI indexes if 50% or more of their assets are held in cryptocurrencies.

JPMorgan reportedly shared the MSCI proposal in a November research note, which drew sharp criticism from both the Bitcoin community and Strategy investors. Excluding treasury companies from key indexes could deprive them of passive capital inflows, potentially forcing sales of crypto holdings to qualify for inclusion and driving down asset prices further.

Implications for Bitcoin and Corporate Holders

The backlash highlights growing tensions between traditional financial institutions and corporate Bitcoin adopters. As the market evolves, corporate holders like Strategy may face heightened scrutiny and competitive pressure from banks launching structured crypto products.

While proponents of corporate Bitcoin strategies continue to advocate for long-term holding, JPMorgan’s notes and the MSCI rule proposal signal a challenging landscape for institutional and corporate Bitcoin adoption, underscoring the delicate balance between innovation and market manipulation concerns.