JPMorgan Chase & Co. increased its holdings in BlackRock’s Bitcoin and Ethereum exchange-traded funds (ETFs) during the second quarter, according to a new filing with the US Securities and Exchange Commission. The bank’s exposure to these products grew notably, with its position in the iShares Bitcoin Trust ETF rising by roughly 25% and its stake in the iShares Ethereum Trust ETF more than quadrupling since the first quarter.
Major ETF position changes in Q2
The SEC’s Form 13F filing, submitted on Wednesday and covering holdings as of June 30, revealed that JPMorgan held approximately 10.4 million shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT), compared to 8.3 million shares at the end of Q1. This holding was valued at around $356 million.
In the same period, JPMorgan’s position in BlackRock’s iShares Ethereum Trust ETF (ETHA) increased more sharply, growing to about 1.17 million shares from 267,000 previously. This marks a more than fourfold rise in its Ethereum ETF exposure within one quarter.
Senior market analyst Jonatan Randin of PrimeXBT pointed out that Form 13F filings aggregate positions from various divisions within financial institutions, including assets held for clients and inventory, making it difficult to interpret these numbers as clear directional bets. The filings also omit short positions, showing only long holdings and not revealing net market exposure.
Randin noted that while these disclosures provide some insight into institutional activity, they “do not necessarily reflect a market outlook or a conviction about price direction.”
First-time investments in XRP products
JPMorgan also reported initial positions in XRP-related investment products during the second quarter. This included 181 shares of Grayscale’s XRP offering valued at $3,763 and 113 shares of Bitwise’s XRP ETF at $1,356. The bank had reported no exposure to either of these products in the prior quarter.
Randin attributed the timing of these new investments to recent regulatory developments regarding XRP and the launch of spot XRP investment products in the United States.
He commented that these investments “add credibility to the regulatory improvements surrounding XRP.”
Mini dictionary: Form 13F, a quarterly report filed by institutional investment managers with at least $100 million in assets under management, required by the SEC to disclose equity holdings.
Reductions in Bitcoin miner exposure
In addition to expanding positions in crypto ETFs, JPMorgan reduced investments in several Bitcoin mining companies during the quarter. Randin suggested that this move likely reflects a shift in the operational focus of some listed miners, as they increasingly diversify into artificial intelligence and high-performance computing sectors.
He explained that miners are no longer straightforward proxies for Bitcoin, and adjusting the related exposures “makes sense regardless of expectations for future price direction.”
| Product | Q1 2024 Shares | Q2 2024 Shares | Q2 Value |
|---|---|---|---|
| iShares Bitcoin Trust ETF (IBIT) | 8.3 million | 10.4 million | $356 million |
| iShares Ethereum Trust ETF (ETHA) | 267,000 | 1.17 million | Not disclosed |
| Grayscale XRP Product | 0 | 181 | $3,763 |
| Bitwise XRP ETF | 0 | 113 | $1,356 |
JPMorgan is the largest US bank by assets and maintains an influential role in global financial markets, including growing involvement in digital asset investment products as more regulated options appear in the sector.
