Bitcoin price rose above $90,000 on Wednesday, extending a strong rally fueled by accelerating institutional demand and a new wave of Wall Street-engineered crypto products.
The rise followed new disclosures that showed BlackRock increasing its exposure to its own spot Bitcoin ETF, and JPMorgan pitching a complex structured note with high stakes linked directly to BlackRock’s IBIT fund.
Bitcoin price hit a 24-hour low of $86,129 before rebounding above $90,300, continuing a volatile rally that has defined the fourth quarter.
BlackRock’s latest regulatory filing shows that the Strategic Income Opportunities Portfolio now holds 2,397,423 shares of IBIT, valued at $155.8 million per share. September 30. That’s up 14% from June, when the fund reported 2,096,447 shares.
The steady build underscores how the world’s largest asset manager is using its internal portfolios to deepen its Bitcoin-linked positions.
The moves come as demand for structured crypto-linked investments heats up among major banks. JPMorgan’s newly proposed derivatives-style note gives institutional clients a way to bet on the future price of Bitcoin through IBIT, currently the largest Bitcoin ETF with nearly $70 billion in assets.
The product is unusual – and aggressive. The note sets a price for IBIT next month. If IBIT trades at or above this rate in a year’s time, the note will be automatically called and investors will receive a fixed return of 16%.
If IBIT trades below the set level in a year, investors will remain in the product until 2028. Should IBIT exceed JPMorgan’s next target price before then, investors will earn 1.5 times their investment with no upside cap. If the Bitcoin price soars, the payouts will follow.
There is also downside protection. If IBIT ends 2028 no more than 30%, investors get their full principal back. However, if the ETF falls more than 30%, the losses are equal to the decline of IBIT.
The structure combines a bond-like wrapper with derivative exposure, a formula FINRA broadly classifies under its “structured note” category. These notes blend a traditional security with option-based payouts tied to a reference asset—in this case, BlackRock’s Bitcoin ETF.
The pitch to institutions is simple: predictable returns if the Bitcoin price stalls next year, leveraged upside through 2028, and limited long-term downside. The trade-off is equally clear: no interest payments, no FDIC insurance, and the risk of losing most or all of the principal.
Reporting from The block helped with this article.
Bitcoin price volatility
JPMorgan is explicit about the effort. Its prospectus warns that investors “should be willing to lose a substantial portion or all of their principal at maturity.” The volatility of Bitcoin, it adds, can be extreme, and the notes remain unsecured liabilities of the bank.
The bank’s latest move also highlights an ongoing shift in Wall Street’s tone toward Bitcoin. CEO Jamie Dimon once mocked Bitcoin as “worse than tulip bulbs.” Yet JPMorgan is now developing products that depend on the digital asset’s long-term trajectory.
Morgan Stanley has explored similar territory. Its own IBIT-linked structured note drew $104 million last month. The bank’s two-year “dual directional autocallable” product offers enhanced payouts if IBIT rises or remains flat, and modest gains if it falls up to 25%. But when losses exceed this level, investors take the hit without any mitigation.
Analysts say these products reflect a revival in the structured note market. Bloomberg reported that the sector is recovering from a decade-long crisis after the collapse of Lehman Brothers wiped out billions tied to similar instruments.
The bitcoin price has fallen more than 30% from its October high, falling to around $87,000 as a nearly two-month rally keeps markets on edge. Mid-tier whale wallets with more than 100 BTC are ticking higher — a potential sign of bargain hunting — but larger whale cohorts continue to offload, contributing to weakened spot demand.
Analysts warn that the key support zone of $80,000-$83,000 is being tested repeatedly, while Citi says the market lacks the inflows needed to stabilize prices.
At the time of writing, the bitcoin price is $90,049.