Leading Wall Street investment bank JP Morgan plans to launch “Cryptocurrency Exposure Basket.”. It revolves around issuing notes to crypto-focused companies, as per a new regulatory filing with the U.S. SEC. Investor clients of the biggest bank in the U.S. will now get a method to receive exposure to cryptocurrencies. It is in the form of public-company stocks associated with digital assets. Moreover, the ‘Cryptocurrency Exposure Basket’ involves popular companies in the crypto space consisting of 11 U.S.-listed companies.
As per the official documents, the bank unveiled that the basket companies will involve those running businesses related directly or indirectly related to crypto. Moreover, it involves BTC holdings, crypto mining products, crypto products, crypto payments, or bitcoin trading. Moreover, 68% of the basket comprises MicroStrategy, Riot Blockchain, Square, and NVIDIA. Other companies involved are PayPal, Advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock.com and Silvergate Capital.
JP Morgan to offer investment notes with a $1000 Minimum Investment
The crypto exposure basket will allot 20% to MicroStrategy, and 18% to Square. It also offers direct exposure of 15% to Riot Blockchain. Meantime, NVIDIA Corporation and PayPal Holdings each record 15% of the basket with 11 companies in total. JPMorgan will provide investment notes with a $1,000 minimum investment, which will payout based on basket companies’ market performances. The notes will carry a maturation date of May 2022, and there will be a reduction of 1.5% in the management fee.
Furthermore, the notes will posses a pricing date of March 26. The original date of issuance will be on March 31, 2021, with observation and maturity dates on May 2, 2022, and May 5, 2020, respectively. JP Morgan further clarifies that the exposure does not link to any particular crypto involving Bitcoin. Moreover, the notes’ performance does not depend on the digital asset market’s performance. Moreover, this new financial product may be an option for institutional investors to receive exposure to the cryptocurrency market without directly holding digital assets. Conventional institutions have frequently been interested in cryptocurrencies, with Bitcoin being the main enticement.
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