Bitcoin ETF Outflows Surge While JPMorgan Opens Crypto to Wealth Clients
Bitcoin ETF holdings drop 23% in early 2025 as corporate crypto adoption grows; JPMorgan expands Bitcoin ETF collateral services for wealth clients; Moscow Exchange launches Bitcoin-linked futures; Trump-backed crypto firm issues cease-and-desist over unauthorized Bitcoin wallet.
Because Bitcoin
June 5, 2025
Moscow Exchange Begins Trading Bitcoin-Linked Futures for Qualified Investors
Starting June 4, 2025, the Moscow Exchange will offer futures contracts tied to the value of cryptocurrencies, specifically a Bitcoin Trust ETF (IBIT), exclusively for qualified investors. These contracts will be quoted in US dollars and settled in Russian rubles, with quarterly expirations, the first in September 2025. This move follows the Bank of Russia’s recent approval for qualified investors to access crypto-linked derivatives, though the central bank continues to discourage direct cryptocurrency investments. Meanwhile, other institutions like SPB Exchange and Sber are also developing similar crypto-derivative products.
JPMorgan Expands Crypto Services, Allowing Bitcoin ETF Collateral and Broader Wealth Client Integration
JPMorgan plans to broaden its crypto offerings for trading and wealth-management clients amid a more favorable U.S. regulatory climate, Bloomberg reports. The bank will soon allow clients to use crypto assets, including BlackRock’s iShares Bitcoin Trust (IBIT), as collateral for loans—previously only permitted on a case-by-case basis. Additionally, crypto holdings will now factor into clients’ net worth and liquidity assessments when determining borrowing capacity. These changes are part of JPMorgan’s wider push into digital assets, despite CEO Jamie Dimon’s public skepticism. The bank is also supporting crypto firms like Circle, which it’s assisting with an IPO. BlackRock’s IBIT, the largest U.S. spot Bitcoin ETF, currently manages $69 billion.
Trump-Backed Crypto Firm Sends Cease-and-Desist Over Unauthorized Bitcoin Wallet
World Liberty Financial (WLFI), a crypto platform tied to President Donald Trump and his family, issued a cease-and-desist letter to Fight Fight Fight LLC, the creators of a Trump-branded Bitcoin wallet and the TRUMP memecoin. The wallet, promoted by Gettrumpmemes.com and NFT marketplace Magic Eden, was not authorized by the Trump Organization. Donald Trump Jr. publicly distanced the family from the project, stating they are working on their own official crypto wallet. The move adds to scrutiny surrounding Trump’s crypto involvement, including WLFI’s USD1 stablecoin and a personal memecoin campaign. Lawmakers are concerned about potential conflicts of interest, which could delay digital asset legislation in Congress.
Institutional Bitcoin ETF Holdings Drop 23% in Early 2025 as Corporate Adoption Rises
In Q1 2025, institutional investors reduced their exposure to Bitcoin ETFs for the first time since US spot ETFs launched, according to a CoinShares report. Holdings fell from $27.4 billion in Q4 2024 to $21.2 billion, a 23% decline driven largely by an 11% drop in Bitcoin’s price. While most professional money managers reduced their positions, financial advisers slightly increased theirs. Corporate treasury strategies, rather than ETF purchases, dominated Bitcoin accumulation. For example, treasury holders now control over 1.98 million BTC, up 18.6% year-to-date. Meanwhile, ETF flows were mixed amid shifting macroeconomic sentiment, with BlackRock’s IBIT seeing a record $430 million single-day outflow on May 30.
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