Wall Street's IBIT-linked structured notes reach $530M in issuance

Cumulative issuance of structured notes linked to BlackRock's spot Bitcoin ETF (IBIT) by major Wall Street investment banks has reached $530 million, according to Bloomberg. The trend began after investment bank Jefferies launched the first U.S. structured note based on IBIT in July, with firms like Goldman Sachs, Morgan Stanley, and JPMorgan subsequently releasing similar products. Bloomberg noted that these products are designed to maintain exposure to the asset while reducing risk, signifying Wall Street's growing efforts to integrate cryptocurrencies into the broader capital markets. The development highlights a shift in perception, as Bitcoin—once largely avoided by traditional finance for its high volatility and lack of regulatory oversight—is now being incorporated as an underlying asset in financial instruments for high-net-worth individuals.