JPMorgan Regulatory Filings have revealed a ‘basket’ of products connected to crypto-linked public companies
While a cluster of regulatory filings are being proposed with the SEC, it symbolizes that the Wall Street investment bank JPMorgan is providing its investor clients a way to explore crypto that is in the form of public-company stocks involved with digital currency.
The documentation elaborates the structured product “Insight Notes Linked to the J.P. Morgan Basket of Companies with Exposure to Cryptocurrency.” The “basket” of companies include name of well-known players in the crypto world including MicroStrategy, Square, and PayPal. There are various other companies included in the basket as well Riot Blockchain, NVIDIA, AMD, semiconductor giant TSMC (in the form of American depository shares), Intercontinental Exchange, CME Group, Overstock and Silvergate.
In the product description, JPM stresses that the exposure given is not directly linked to any particular cryptocurrency including bitcoin. Also, the performance of the notes is not connected to the performance in the digital asset market itself. The documentation explains:
“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.”
As per the documentation, the notes include a pricing date of March 26, an original issue date of “on or about March 31, 2021” with observation and maturity dates on May 2, 2022 and May 5, 2022, respectively. The existence of structured products also demands exposure to crypto, albeit indirect, is ascendant.
A digital asset executive for Goldman Sachs spoke to the degree of investor interest around the asset class in a recent podcast appearance. The developments have come after JPMorgan distributed an educational deck of clients to help them understand the basics, risks, and potential of bitcoin and cryptocurrencies. This distribution was in February as per the previous reports.
