Protecting Bitcoin Gains - While Staying Invested

Bitcoin has increasingly become part of the modern portfolio conversation.

Blockchain adoption continues to expand. Institutional investors are increasing participation. Advisors are incorporating Bitcoin into diversified portfolios. And clients continue asking how to gain exposure responsibly.

Investors are drawn to the asset class for several reasons:

Limited supply and digital scarcity
Growing institutional acceptance
Integration into traditional financial markets
Potential hedge against currency debasement policies

But alongside that opportunity comes significant volatility. Even strong long-term trends can experience sharp corrections.

As we moved into early 2026, we recognized that volatility could increase. Rather than leaving clients fully exposed to another potential drawdown, we sought a way to help protect against additional losses while allowing them to remain invested and potentially recover recent declines more efficiently if markets rebounded.

To accomplish that, we worked directly with JP Morgan to structure a custom 3-year solution tied to the iShares Bitcoin Trust (IBIT), designed exclusively for our clients. The structure introduced defined downside parameters while providing 1.2x upside participation — meaning gains could compound at an accelerated rate during a recovery, subject to a capped return.

Investment Snapshot

Issuer: JP Morgan Chase
Underlying: iShares Bitcoin Trust (IBIT)
Pricing Date: February 5, 2026
Initial IBIT Price: $36.10
Term: 3 Years
Downside Protection: 100% principal protection up to a 40% decline
Upside Participation: 1.2x leverage
Maximum Return: 193.15% (capped)

Important Considerations

Investors should understand the specific characteristics of this structure:

Returns are capped at 193.15% over the 3-year term.
Downside protection applies only at maturity and only up to a 40% decline.
If IBIT declines more than 40% at maturity, losses begin beyond that threshold.
The investment is subject to the credit risk of JP Morgan as issuer.
Liquidity prior to maturity may be limited.
This is a debt security linked to IBIT — not direct ownership of Bitcoin or the ETF.

Each structured note has its own terms and risk profile. Careful review of offering documents is essential before investing. Security CUSIP: 46660JNR9

View the offering document here.

Final Thoughts

Bitcoin exposure does not have to mean accepting full volatility.

By combining defined downside protection with enhanced upside participation, this custom solution demonstrates how disciplined structuring can create a more thoughtful way to access emerging asset classes.

For investors seeking participation — not speculation — strategies like this can play a valuable role in portfolio construction.