JPMorgan to Launch Indirect Cryptocurrency Investment Opportunity


The financial services giant, JPMorgan Chase, has filed a prospectus with the SEC to launch a debt instrument tied to 11 cryptocurrency-focused companies.

March 10, 2021 | AtoZ Markets – JPMorgan Chase has designed a new debt instrument that offers investors direct exposure to a basket of cryptocurrency-focused companies, according to a new filing with the US Securities and Exchange Commission (SEC).

JPMorgan to Launch Investment Basket with Crypto-Linked Stocks

JPMorgan’s Cryptocurrency Exposure Basket  is described as an “unevenly weighted basket consisting of 11 benchmark stocks of US-listed companies” that operate businesses directly and indirectly related to cryptocurrencies.

The instrument allocates 20% to MicroStrategy, the data analysis company with 91,064 BTC on its balance sheet. It also offers direct exposure to Square (18%) and Riot Blockchain (15%), two companies with significant exposure to Bitcoin. Nvidia Corporation and PayPal Holdings each account for 15%Advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock.com and Silvergate Capital are also part of the basket.

The document says:

“The benchmark stock weights were determined based in part on exposure to Bitcoin, correlation to Bitcoin, and liquidity.”

JPMorgan says the payments are based on the performance of the basket of companies. The minimum investment is $1,000 and the expiration date is May 2022.

The new product represents one of the many ways institutional investors can access the rising cryptocurrency market.

Wall Street is already embracing digital currencies en masse, which largely explains the strong support from lower Bitcoin prices. The flagship digital currency traded at $54,888 on Wednesday, according to TradingView.

If the Bitcoin exchange-traded fund (ETF) launched by Purpose is any example, traditional investors have a huge appetite for digital assets. The Canadian ETF posted volume of nearly $100 million during its debut earlier this month, surpassing $1 billion in assets after its first week.

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