A new filing with the United States Securities and Exchange Commission (SEC) stated that JPMorgan Chase has filed paperwork with the SEC to launch a debt instrument linked to 11 crypto-focused firms.
It has been reported that JPMorgan’s Cryptocurrency Exposure Basket, March 2021, is described as an “unequally weighted basket consisting of 11 Reference Stocks of US-listed companies” that operate businesses, directly and indirectly, related to cryptocurrencies.
However, the instrument allocates 20% to MicroStrategy, the data analytics firm with 91,064 BTC on its balance sheet. It also provides direct exposure to Square (18%) and Riot Blockchain (15%), two companies with significant exposure to Bitcoin. Nvidia Corporation and PayPal Holdings each account for 15% of the basket.
Eleven firms with direct and indirect exposure to digital assets have made it onto JPMorgan's Cryptocurrency Exposure Basket. https://t.co/W1yrfMjQuV — Cointelegraph (@Cointelegraph) March 10, 2021
The report said that advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock.com, and Silvergate Capital are also included in the basket.
The prospectus stated:
“The weights of the Reference Stocks were determined based in part on exposure to Bitcoin, correlation to Bitcoin and liquidity.”
Thus, JPMorgan said that payouts are based on how the basket of companies performs. The minimum investment is $1,000 with a maturation date of May 2022.
Source: Cointelegraph | Image: Bloomberg