JPMorgan Expands Strategy and Bitcoin ETF Holdings
JPMorgan increased its exposure to Strategy and U.S. spot Bitcoin ETFs during the third quarter, adding to its positions before a sharp downturn in the cryptocurrency market and MSCI’s decision to remove Strategy from several major indexes.
The bank held 848,932 Strategy shares worth approximately $131.3 million as of September 30, according to its latest regulatory filing. That marked a 36% increase from the 624,387 shares reported in the previous quarter.
JPMorgan also raised its position in BlackRock’s iShares Bitcoin Trust (IBIT) to 11.4 million shares, valued at around $540 million. In comparison, it held 10.4 million shares worth $355.7 million at the end of June.
The increase represented a 9.6% rise in IBIT shares, while the position’s market value climbed roughly 52%. Together, the bank’s Strategy and IBIT holdings were valued at approximately $671 million.
Its portfolio also included smaller investments in the Grayscale Bitcoin Mini Trust and Bitwise Bitcoin ETF. However, JPMorgan’s reported holdings included sizable put and call options, suggesting its exposure may involve hedging and derivatives strategies rather than a straightforward bullish position on Bitcoin.
These figures reflect the bank’s portfolio at the end of September and do not capture developments during the subsequent market decline.
MSCI Index Removal Puts Pressure on Strategy
JPMorgan’s increased exposure comes as Strategy faces a major index-related challenge. MSCI confirmed that it will remove the company from the MSCI USA Index after the market closes on November 30. The decision also affects its inclusion in the MSCI World and MSCI ACWI indexes.
The exclusion could prompt passive investment funds tracking those benchmarks to sell their Strategy shares. JPMorgan previously estimated that the move could create approximately $2.8 billion in selling pressure, with the potential for greater outflows if other index providers adopt similar policies.
The decision is a setback for Michael Saylor’s company, whose business model centers on accumulating Bitcoin as a corporate treasury asset.
Bitcoin Slides Below $69,000 as Liquidations Mount
Bitcoin has also come under renewed pressure, falling below $69,000 to its lowest level since August.
The decline triggered roughly $1.6 billion in liquidations across the crypto market over a 24-hour period. Long positions accounted for more than $1.3 billion of the liquidated trades, highlighting the extent to which leveraged bullish bets were caught off guard by the sell-off.
JPMorgan’s latest filing therefore offers a snapshot of its crypto-related exposure before the latest market turmoil and MSCI’s index changes took effect.
