Wall Street giant JPMorgan plans to give its clients indirect exposure to cryptocurrencies with investments in several companies that have invested heavily in Bitcoin and the cryptocurrency economy as a whole, according to the latest filing from the Securities and Exchange Commission. (SEC).
In the structured investment documentation titled "Information Notes Linked to JP Morgan's Basket of Companies with Exposure to Cryptocurrencies," the investment bank revealed that it will offer an investment basket with 11 companies that are closely linked to the cryptocurrency economy. .
MicroStrategy, a business analytics firm heavily invested in Bitcoin, will weigh 20 percent in the equity basket, followed by Square with 18 percent, Riot Blockchain with 15 percent, and NVIDIA with 15 percent. hundred.
Other companies in the basket are PayPal, which offers cryptocurrency trading and bought cryptocurrency custody startup Curv, chipmaker AMD, Taiwanese semiconductor giant TSMC, Intercontinental Exchange, CME Group, Overstock, and Silvergate.
JPMorgan will offer investment notes with a minimum investment of $ 1,000, which will be paid based on the market performance of the companies in the basket. The notes will have a maturity date of May 2022 and there will be a deduction of 1.5 percent in the management fee.
JPMorgan's product will not be tied to the price of cryptocurrencies
Furthermore, the investment bank emphasized that the structured investment product is not directly tied to any cryptocurrency, and the performance will not correlate with the performance of the cryptocurrency market.
“The notes are designed for investors seeking exposure to the performance of JP Morgan's (March 2021) cryptocurrency exposure basket of unequally weighted benchmark stocks, which we refer to as the basket, reduced by the deduction of the basket of 3.00%. Regardless of the name of the Basket, the notes do not provide direct exposure to cryptocurrencies and the performance of the Basket may not be correlated to the price of any particular cryptocurrency, such as bitcoin, ”the SEC filing noted.