Wall Street Giants Make Their Move: JPMorgan’s Double Blow Shakes Markets as BlackRock Bets on a New Bitcoin ETF
I. JPMorgan Makes History: JPM Coin Goes Live on Ethereum Mainnet
On October 19, JPMorgan’s Kinexys division officially deployed its dollar deposit token, JPMD, to the Ethereum mainnet—a major expansion following its launch on the Base network. JPMD had already reached an average daily transaction volume of $7 billion. Bringing it on-chain means JPMorgan’s institutional-grade settlement capabilities can operate around the clock, no longer limited by traditional banking hours.
The deeper significance of this move is that one of Wall Street’s top banks is treating Ethereum as institutional-grade financial infrastructure. Ethereum is no longer just a playground for crypto-native projects; it is becoming a foundational settlement layer for traditional finance. JPMorgan’s entry, together with its partnerships with Coinbase and Thunes, signals that bank-issued deposit tokens are emerging as serious competitors to traditional stablecoins.
II. First Time in 31 Years: JPMorgan Predicts Bitcoin Will Outperform U.S. Stocks and Gold
Even more market-shaking, JPMorgan Asset Management included Bitcoin in its asset-allocation model for the first time in its 31-year history of publishing its Long-Term Capital Market Assumptions. The report forecasts that Bitcoin will deliver a 10% annualized compound return over the next decade, outperforming the 7.5% forecast for the U.S. stock market, 8.2% for real estate investment trusts, and 5.5% for gold.
This marks a fundamental shift in how mainstream Wall Street institutions view Bitcoin. In the past, major banks tended to take a cautious, wait-and-see approach. This time, JPMorgan not only acknowledged Bitcoin’s long-term return potential, but also ranked it above traditional asset classes. The report did note that Bitcoin’s high volatility continues to limit its usefulness for portfolio diversification in the short term, but the forecast itself is a landmark signal.
III. BlackRock Follows Suit: Launching a Protected Bitcoin ETF
On the same day JPMorgan released its forecast, BlackRock, the world’s largest asset manager, filed an application with the U.S. Securities and Exchange Commission for the iShares Bitcoin Managed Protection ETF, ticker PBIT. The product uses an IBIT options spread strategy to provide approximately 10% downside protection, in exchange for capping potential upside gains.
The cleverness of this product design lies in its target audience: conservative investors who are optimistic about Bitcoin’s long-term prospects but put off by its volatility. BlackRock’s IBIT attracted $665 million in inflows on October 19 alone, while spot Bitcoin ETFs collectively recorded net inflows of $526.7 million that day. Institutional appetite for Bitcoin has not faded; it is accelerating.
IV. Stablecoin Transfer Volumes Surge Fourfold as On-Chain Payment Infrastructure Takes Shape
Meanwhile, adjusted stablecoin transfer volume reached $891 billion in the third quarter, more than four times the level at the start of 2023, with over $400 million moving on-chain every hour. U.S. banks are rapidly integrating stablecoin infrastructure. From JPMorgan’s JPMD to the Coinbase–Thunes partnership, institutional-grade on-chain payments are moving from concept to reality.
As the implementing rules for the U.S. GENIUS Act become clearer, greater clarity around compliance boundaries will further encourage traditional financial institutions to embrace on-chain payments.
V. Market Outlook: The Institutional Era Begins
From JPMorgan bringing JPM Coin on-chain and Bitcoin entering its 30-year asset-allocation model for the first time, to BlackRock’s protected ETF and the explosive growth in stablecoin transfer volumes, October 2026 is becoming a watershed moment in the institutionalization of the crypto market. Wall Street is no longer just watching from the sidelines; it is becoming a deeply engaged participant in on-chain finance. For everyday investors, following institutional moves, understanding product innovation, and keeping up with regulatory trends will be key priorities in the next phase.
#EarningsSeason #JPMorganPredictsBitcoinBestPerformingAssetOverNextDecade #BitcoinETF
I. JPMorgan Makes History: JPM Coin Goes Live on Ethereum Mainnet
On October 19, JPMorgan’s Kinexys division officially deployed its dollar deposit token, JPMD, to the Ethereum mainnet—a major expansion following its launch on the Base network. JPMD had already reached an average daily transaction volume of $7 billion. Bringing it on-chain means JPMorgan’s institutional-grade settlement capabilities can operate around the clock, no longer limited by traditional banking hours.
The deeper significance of this move is that one of Wall Street’s top banks is treating Ethereum as institutional-grade financial infrastructure. Ethereum is no longer just a playground for crypto-native projects; it is becoming a foundational settlement layer for traditional finance. JPMorgan’s entry, together with its partnerships with Coinbase and Thunes, signals that bank-issued deposit tokens are emerging as serious competitors to traditional stablecoins.
II. First Time in 31 Years: JPMorgan Predicts Bitcoin Will Outperform U.S. Stocks and Gold
Even more market-shaking, JPMorgan Asset Management included Bitcoin in its asset-allocation model for the first time in its 31-year history of publishing its Long-Term Capital Market Assumptions. The report forecasts that Bitcoin will deliver a 10% annualized compound return over the next decade, outperforming the 7.5% forecast for the U.S. stock market, 8.2% for real estate investment trusts, and 5.5% for gold.
This marks a fundamental shift in how mainstream Wall Street institutions view Bitcoin. In the past, major banks tended to take a cautious, wait-and-see approach. This time, JPMorgan not only acknowledged Bitcoin’s long-term return potential, but also ranked it above traditional asset classes. The report did note that Bitcoin’s high volatility continues to limit its usefulness for portfolio diversification in the short term, but the forecast itself is a landmark signal.
III. BlackRock Follows Suit: Launching a Protected Bitcoin ETF
On the same day JPMorgan released its forecast, BlackRock, the world’s largest asset manager, filed an application with the U.S. Securities and Exchange Commission for the iShares Bitcoin Managed Protection ETF, ticker PBIT. The product uses an IBIT options spread strategy to provide approximately 10% downside protection, in exchange for capping potential upside gains.
The cleverness of this product design lies in its target audience: conservative investors who are optimistic about Bitcoin’s long-term prospects but put off by its volatility. BlackRock’s IBIT attracted $665 million in inflows on October 19 alone, while spot Bitcoin ETFs collectively recorded net inflows of $526.7 million that day. Institutional appetite for Bitcoin has not faded; it is accelerating.
IV. Stablecoin Transfer Volumes Surge Fourfold as On-Chain Payment Infrastructure Takes Shape
Meanwhile, adjusted stablecoin transfer volume reached $891 billion in the third quarter, more than four times the level at the start of 2023, with over $400 million moving on-chain every hour. U.S. banks are rapidly integrating stablecoin infrastructure. From JPMorgan’s JPMD to the Coinbase–Thunes partnership, institutional-grade on-chain payments are moving from concept to reality.
As the implementing rules for the U.S. GENIUS Act become clearer, greater clarity around compliance boundaries will further encourage traditional financial institutions to embrace on-chain payments.
V. Market Outlook: The Institutional Era Begins
From JPMorgan bringing JPM Coin on-chain and Bitcoin entering its 30-year asset-allocation model for the first time, to BlackRock’s protected ETF and the explosive growth in stablecoin transfer volumes, October 2026 is becoming a watershed moment in the institutionalization of the crypto market. Wall Street is no longer just watching from the sidelines; it is becoming a deeply engaged participant in on-chain finance. For everyday investors, following institutional moves, understanding product innovation, and keeping up with regulatory trends will be key priorities in the next phase.
#EarningsSeason #JPMorganPredictsBitcoinBestPerformingAssetOverNextDecade #BitcoinETF