JPMorgan Chase has created a new debt instrument that will offer investors direct exposure to a basket of crypto-focused companies, according to a new filing with the US SEC.
JPMorgan’s Cryptocurrency Exposure Basket has been described as an “unequally weighted basket consisting of 11 Reference Stocks of U.S.-listed companies” that run their business directly or indirectly related to the world of crypto.
The instrument offers 20% to MicroStrategy, a company that has 91,064 BTC on its balance sheet. It will also offer direct exposure to Square (18%) and Riot Blockchain (15%), two companies that also have had exposure to BTC. Meanwhile, both Nvidia Corporation and PayPal Holdings account for 15% of the basket, each.
Also included in the basket are Advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock.com, and Silvergate Capital.
The prospectus mentions that “the weights of the Reference Stocks were determined based in part on exposure to Bitcoin, correlation to Bitcoin and liquidity.”
JPMorgan has declared that payouts are based on how the basket of companies performs and that the lowest amount one could invest is $1,000 with a maturation date of May 2022.
This product is just one of the many new and interesting ways in which an institutional investor can gain access to the high-flying crypto market. It is already well known that Wall Street is embracing crypto more and more, which also explains why Bitcoin’s price has experienced such a development.