JPMorgan plans new product to give clients crypto exposure

Public documents from the U.S. Securities and Exchange Commission show that Wall Street investment bank JPMorgan plans to launch a basket product related to Bitcoin: JP Morgan Cryptocurrency Exposure Basket.

The bank is offering its investor clients a way to gain crypto exposure in the form of shares in public companies tied to digital assets.

The structured product reportedly includes shares of well-known companies in the cryptocurrency space, such as market intelligence firm MicroStrategy, Square, PayPal, Riot Blockchain, Nvidia, AMD, Intercontinental Exchange, CME, Overstock and Silvergate.

According to the filing, the product has a pricing date of March 26, an original issuance date of around March 31, 2021, and observation and expiration dates of May 2, 2022 and May 5, 2022, respectively.

In its product description, JPMorgan Chase emphasized that the exposure provided by the product is not directly related to any specific cryptocurrency (including Bitcoin), and the performance of the product is not linked to the performance of the digital asset market itself, as stated in the document:

“These products are designed for investors seeking to gain exposure to the JPMorgan Cryptocurrency Exposure Basket (March 2021), which is comprised of reference stocks with varying weights. The product does not provide direct exposure to cryptocurrencies, and its performance may not be correlated to the price of any specific cryptocurrency (such as Bitcoin).”

The existence of structured products is perhaps another sign that demand for any form of cryptocurrency is rising among Wall Street clients, albeit indirectly.

Matthew McDermott, head of digital assets at Goldman Sachs, spoke about the level of investor interest in the asset class in a recent podcast: “There is demand for Bitcoin from a wide variety of Goldman Sachs clients, from hedge funds to high net worth individuals.”

The move comes shortly after JPMorgan Chase distributed a set of educational materials to its clients to help them understand the basics, risks and potential of Bitcoin and cryptocurrencies.

Crypto data aggregator Coingecko said the filing is evidence that the Wall Street giant is offering another way for clients to enter the $1.7 trillion crypto market.

Image source: JPMorgan, pixabay

byAmy Liu

This article comes from Bitpush.News. Reprinting must indicate the source.