JPMorgan Chase has developed a new debt instrument that gives investors direct access to a basket of cryptocurrency-focused companies, according to new submissions from the US Securities and Exchange Commission (SEC).
JPMorgan’s Cryptocurrency Basket (March 2021) is described as “a different weight basket with 11 benchmarks in US listed companies” that conduct business directly or indirectly related to digital currencies.
The tool allocates 20% of MicroStrategy Corporation to data analysis with 91,064 BTC on the balance sheet. It also provides direct access to Square (18%) and Riot Blockchain (15%), two companies with significant Bitcoin influence. Nvidia Corporation and PayPal Holdings each have 15% of the basket.
Advanced Micro Devices, Taiwan Semiconductor Corporation, InterContinental Exchange, CME Group, Overstock.com and Silvergate Capital are also included in the basket.
The folder says the following:
“The benchmarks of equities are determined in part based on the effect of bitcoin, the correlation with bitcoin and liquidity.”
JP Morgan says that the payments are based on how the corporate curve works. The minimum investment is USD 1000 maturing in May 2022.
The new product represents one of the many ways institutional investors can access the cryptocurrency market. Wall Street is already moving towards cryptocurrencies, which explains much of the strong price support that supports Bitcoin. The largest digital currency traded at $ 54,888 on Tuesday, according to TradingView.
If the newly launched targeted Bitcoin ETF can do something, traditional investors have a strong appetite for digital assets. The Canadian ETF had nearly $ 100 million in volume at the time of its debut earlier this month, putting it on the right track to surpass $ 1 billion in assets after the first week.