JPMorgan to offer Bitcoin-linked stock basket product

JPMorgan to offer Bitcoin-linked stock basket product

JPMorgan Chase has designed a new debt instrument that allows investors to invest directly in a basket of cryptocurrency-focused companies, according to a new filing with the U.S. Securities and Exchange Commission (SEC).

JPMorgan’s “Crypto Exposure Basket” is described as “an unequally weighted basket of 11 reference stocks of U.S. public companies” that operate businesses directly or indirectly related to cryptocurrencies.

In this basket, data analysis company MicroStrategy accounts for 20%, with 91,064 BTC on its balance sheet. It also provides direct exposure to Square (18%) and Riot Blockchain (15%), both of which have a large exposure to Bitcoin. Nvidia and PayPal Holdings each account for 15%. SMIC, TSMC, Intercontinental Exchange, Chicago Mercantile Exchange Group, Overstock.com and Silvergate Capital are also included in this basket. It should be noted that JPMorgan Chase revealed in the product description that the exposure provided by this product is not directly related to any specific cryptocurrency, including Bitcoin.

The product has a pricing date of March 26, an original issuance date of “around March 31, 2021,” an observation date and expiration date of May 2, 2022 and May 5, 2022, respectively, and a minimum investment of $1,000.

In addition, earlier this month, JPMorgan Chase distributed an educational material to its customers to help them understand the basics, risks and potential of Bitcoin and cryptocurrencies. The content includes the basics of Bitcoin and the impact of adding Bitcoin to your investment portfolio. (Golden Finance)