JPMorgan analysts argued that the main long-term risk for Bitcoin is not company sales, but financial institutions’ turn to private blockchain networks. In the evaluation, it was emphasized that corporate sales, which have occupied the agenda recently, remained in the background, and the bigger topic was the adoption of blockchain technology by traditional finance without the need for public networks.
Greater risk from company sales
JPMorgan analyst Nikolaos Panigirtzoglou stated in his note dated July 2 that the sales caused by Strategy created a two-way flow risk that could be avoided. Strategy holds approximately 4% of Bitcoin’s circulating supply through purchases spanning many years. For this reason, the company’s buying or selling steps are closely monitored in the market.
However, JPMorgan thinks the current debate cannot be limited to institutional sales alone. According to the bank, the main issue is that large financial institutions are turning to models that can disable unauthorized public networks and crypto assets connected to them while using blockchain infrastructure.
JPMorgan analysts assess that the bigger threat to Bitcoin is not institutional sell-offs but traditional finance adoption of blockchain technology that bypasses public networks.
Kinexys example featured
JPMorgan points to its own infrastructure as one of the concrete examples of this approach. The bank operates Kinexys, a permissioned blockchain system for reconciling transfers between corporate customers. As one of the world’s largest financial institutions, JPMorgan is closely followed in the industry due to its influence in areas such as payment, clearing and custody.
Mini dictionary: Permissioned blockchain refers to a closed structure in which it is determined in advance who can join the network. In this model, although transactions are carried out with distributed ledger logic, they are collected in institutions with limited access and verification authority.
It was stated that the in-bank platform has processed a cumulative transaction volume of over 4 trillion dollars to date. This chart indicates that incumbent financial institutions can proceed without direct contact with public crypto assets while benefiting from the efficiencies provided by distributed ledger technology.
JPMorgan views the current $50 billion real-world asset tokenization market as an early-stage trial.
Regulatory prospects are also being questioned
Analysts think that the market size of approximately $50 billion reached today may not be the last stop in the tokenization of real-world assets. It was evaluated that this field reflects an experimental process at an early stage rather than being a permanent and dominant orientation of corporate capital.
JPMorgan also distanced itself from the view that current crypto regulations in the US would provide a direct advantage to Bitcoin. Even if the CLARITY Act becomes law later in the year, this step may not solve Bitcoin’s broader structural problems, according to analysts.
The note also warned that regulatory clarity could accelerate banks’ issuance of tokenized deposits. In such a scenario, the competitive space for stablecoins running on public blockchains could narrow, creating new pressure on the broader crypto ecosystem, including Bitcoin.
