JPMorgan’s plan to launch a new Bitcoin-backed financial product has ignited sharp criticism from the crypto community, with many accusing the banking giant of competing with and attempting to undermine digital asset treasury companies like MicroStrategy.

The controversy centers on JPMorgan’s proposed leveraged notes, an investment product tied to the price of Bitcoin. Scheduled for a December 2025 launch, these notes are designed to amplify market movements, providing investors with 1.5 times the gains or losses on Bitcoin’s price through December 2028.

Accusations of Strategic Undermining

Supporters of MicroStrategy, the largest corporate holder of Bitcoin, argue that this move positions JPMorgan as a direct competitor. They claim the bank now has an incentive to spread fear, uncertainty, and doubt about companies holding large Bitcoin reserves to promote its own structured product.

Some observers on social media noted the irony that financial institutions are now launching Bitcoin-backed bonds, a strategy pioneered by MicroStrategy’s Michael Saylor to access bond and fixed-income markets. Bitcoin advocate Simon Dixon alleged the product is designed to trigger margin calls on Bitcoin-backed loans, which could force treasury companies to sell their holdings during market downturns.

The growing backlash has led to calls for a boycott of JPMorgan, with some crypto enthusiasts encouraging others to close their accounts and sell any shares they own in the financial services firm.

MSCI Rule Change Fuels Tensions

The situation was aggravated by a proposed policy shift from MSCI, a major provider of stock market indexes. In a November research note, JPMorgan highlighted MSCI’s proposal to exclude companies that hold 50% or more of their assets in cryptocurrencies from its indexes.

If this change takes effect in January as planned, it could prevent companies like MicroStrategy from being included in major stock indexes. Critics warn this would deprive them of significant passive capital investment and could pressure them to sell their crypto assets to remain compliant, potentially driving down prices.