JPMorgan to Launch Investment Basket with Crypto-Linked Stocks


Wall Street giant JPMorgan is planning to provide its clients indirect exposure to cryptocurrencies with investment into several companies that are heavily invested in Bitcoin and the crypto economy as a whole, according to the latest Securities and Exchange Commission (SEC) filing.

In structured investment documentation titled “Insight Notes Linked to the J.P. Morgan Basket of Companies with Exposure to Cryptocurrency,” the investment bank revealed that it is going to offer an investment basket with 11 companies that are closely tied to the cryptocurrency economy.

MicroStrategy, a business analytics company heavily invested in Bitcoin, will have 20 percent weight into the stock basket, followed by Square with 18 percent, Riot Blockchain with 15 percent and NVIDIA with 15 percent.

Other companies in the basket are PayPal, which offers crypto trading and bought crypto custody startup Curv, chipmaker AMD, Taiwanese semiconductor giant TSMC, Intercontinental Exchange, CME Group, Overstock and Silvergate.

JPMorgan will offer 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 deduction of 1.5 percent in the management fee.

Not Investing in Crypto

Additionally, the investment bank stressed that the structured investment product is not directly tied to any cryptocurrencies, and the performance will not correlate to the cryptocurrency market performance.

“The notes are designed for investors who seek exposure to the performance of the J.P. Morgan Cryptocurrency Exposure Basket (Mar 2021) of unequally weighted Reference Stocks, which we refer to as the Basket, as reduced by the Basket Deduction of 3.00%. Notwithstanding the name of the Basket, the notes do not provide direct exposure to cryptocurrencies and the performance of the Basket may not be correlated with the price of any particular cryptocurrency, such as bitcoin,” the SEC filing noted.

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