Some Bitcoiners are calling on community members to close bank accounts and divest from the company
A new wave of criticism has hit JPMorgan after Bitcoin supporters accused the bank of spreading fear, uncertainty, and doubt (FUD) about Strategy, the largest corporate holder of Bitcoin, and other crypto treasury firms. The backlash centers on JPMorgan’s upcoming Bitcoin-backed notes, a leveraged product that tracks BTC’s price and delivers 1.5x gains or losses through December 2028. The notes are set to launch before the end of the year, according to a recent SEC filing.
Many in the Bitcoin community argue that JPMorgan has now positioned itself as a direct competitor to companies holding large BTC reserves. They claim the bank has an incentive to weaken public confidence in firms like Strategy to promote its own structured investment vehicle.
Critics on social media said JPMorgan is entering markets unlocked by Strategy’s high-profile corporate adoption of Bitcoin while simultaneously contributing to negative sentiment around those same companies.
Bitcoin advocate Simon Dixon added that leveraged Bitcoin products can intensify volatility by triggering margin calls during downturns. He argued that such products could add selling pressure on Bitcoin treasury companies during market dips, creating forced liquidations at the worst possible times.
The controversy escalated further after MSCI proposed a rule change that would exclude crypto treasury companies from major stock indexes if more than half of their assets are held in digital currencies. JPMorgan circulated this proposal in a November research note, prompting accusations that the bank was amplifying a policy shift that could hurt Bitcoin-focused firms.
If adopted, the MSCI change would cut off treasury companies from passive index investment flows, potentially pressuring them to reduce BTC holdings to maintain index eligibility. Strategy supporters argue this could destabilize the market and unfairly target companies using Bitcoin as a treasury reserve.
