Bitcoin Community Hits Back at JPMorgan Over New BTC Notes

Critics argue that the bank is copying Bitcoin treasury strategies while also working to weaken them, and pointed to JPMorgan’s promotion of an MSCI proposal that would exclude crypto-heavy firms from major stock indexes. Supporters say the move could drain passive capital, force treasury firms to sell BTC, and depress prices. The controversy led some Bitcoiners to call for a boycott of JPMorgan.

JPMorgan Faces More Backlash

JPMorgan’s plan to launch a new Bitcoin-backed structured note ignited a fierce backlash among Bitcoin supporters and fans of Strategy, the largest corporate holder of BTC. The notes are set for a December 2025 release according to an SEC filing,and  offer 1.5x leveraged exposure to Bitcoin’s price performance through December 2028 — magnifying both gains and losses for investors. 

While it is framed as another way for traditional finance to engage with digital assets, many in the Bitcoin community see the product as a strategic threat specifically aimed at undercutting firms that hold BTC directly on their balance sheets.

Critics argue that JPMorgan effectively positioned itself as a competitor to Bitcoin treasury companies, giving the bank an incentive to diminish the reputation and liquidity of firms like Strategy. People on X said that Michael Saylor’s high-profile adoption of Bitcoin as a corporate treasury asset opened the door for Wall Street to enter the market, and they accuse JPMorgan of copying the playbook while also benefiting from the narrative pressure placed on BTC-heavy companies.

Bitcoin advocate Simon Dixon suggested that the product is designed in a way that could intensify forced selling during market downturns, triggering margin calls on Bitcoin-backed loans and increasing sell-side pressure at moments of vulnerability.

The situation escalated even more after MSCI unveiled a proposed rule change that would exclude companies holding 50% or more of their assets in crypto from its major stock indexes starting in January. JPMorgan circulated the proposal in a November research note, which led to claims that the bank was amplifying a policy shift that could directly harm firms like Strategy. 

The exclusion will block these companies from receiving passive capital flows tied to index-tracking funds and pensions, which could potentially push them to sell large amounts of their Bitcoin reserves to regain eligibility. Bitcoin supporters argue that this could depress crypto asset prices while rewarding traditional financial intermediaries offering synthetic or derivative exposure instead.

In response, a growing segment of the Bitcoin community is urging a boycott of JPMorgan, and is encouraging users to close accounts and divest from the bank’s stock. Strategy supporters and other advocates say the timing of JPMorgan’s new product, coupled with the MSCI policy proposal, is part of a coordinated financial pressure campaign against crypto-native treasury strategies.