JPMorgan Chase has stirred controversy in the crypto world after filing with the U.S. Securities and Exchange Commission (SEC) to offer leveraged Bitcoin-backed notes. These financial products are designed to give investors amplified exposure to Bitcoin’s price movements, but without directly owning the cryptocurrency.
While such offerings may appeal to Wall Street clients seeking Bitcoin exposure, the filing has drawn criticism from Bitcoin advocates. They accuse JPMorgan of trying to undermine decentralized strategies and digital asset trusts (DATs), which promote direct ownership of Bitcoin rather than through traditional financial instruments.
A Game Tilted in Wall Street’s Favor?
Bitcoiners argue that products like JPMorgan’s leveraged notes go against the decentralized ethos of cryptocurrency. Unlike Bitcoin ETFs or holding Bitcoin directly, leveraged notes can be structured in ways that favor issuers, often with higher fees and less transparency.
Critics claim this move is another attempt by legacy financial institutions to control the Bitcoin narrative and profit without fully embracing the underlying technology. Strategy-based funds and DATs are considered more aligned with the crypto community’s goals, offering true exposure to Bitcoin’s potential without the influence of traditional financial players.
Some see JPMorgan’s move as part of a broader trend where Wall Street enters crypto only when it can control or reshape it to suit its traditional models.
NEW: Bitcoiners accuse JPMorgan of rigging the game against Strategy and DATs after filing with SEC to launch leveraged Bitcoin-backed notes. pic.twitter.com/EO3rsQsapV
— Cointelegraph (@Cointelegraph) November 28, 2025
What This Means for Crypto Investors
For retail and institutional investors alike, JPMorgan’s filing signals both growing interest and increasing complexity in the crypto investment landscape. While leveraged products may offer greater returns in bull markets, they also come with significantly higher risks.
The controversy raises important questions about who truly benefits from such financial instruments, and whether the rise of these products serves or undermines the long-term goals of decentralization and financial independence that the crypto community champions.