JPMorgan has proposed a Bitcoin structured note product that could generate huge returns if BTC surges by 2028.

According to Odaily, JPMorgan Chase has submitted a proposal to regulators for a leveraged structured note product linked to BlackRock's iShares Bitcoin Trust (IBIT) ETF. This product would allow investors to bet on the future price of Bitcoin.

According to the prospectus, if the price of the IBIT ETF is equal to or higher than the preset price by December 21, 2026, JPMorgan will redeem the notes early, paying at least $160 per note (priced at $1,000).

However, if the price falls below the preset price at that time, the note will continue to be held until 2028. In this scenario (if approved by the SEC), investors would be able to obtain a 1.5x return on the increase in Bitcoin's price, potentially resulting in an "uncapped" huge return. This means that if Bitcoin surges by 2028, the amplified returns could be substantial.

However, the document also points out that if the price of Bitcoin falls sharply (40% or more), investors will lose most of their initial investment. JPMorgan warns that Bitcoin has historically exhibited high price volatility relative to traditional asset classes and may continue to experience extreme volatility.

Bloomberg ETF analyst James Seyffart stated that banks are "very common" engaging in such operations on "any asset you can think of." (decrypt)