Banking giant JPMorgan has developed a new debt instrument that provides investors direct exposure to a host of crypto-linked companies, a new filing with the U.S. Securities and Exchange Commission shows.
JPM’s proposed “cryptocurrency exposure basket” is described as an “unequally weighted basket consisting of 11 Reference Stocks of U.S.-listed companies” directly related to digital assets, according to CoinTelegraph.
The basket will be heavy on NVIDIA, Square, MicroStrategy, and Riot Blockchain stocks, the SEC filing added.
Other tech groups in the basket include AMD, semiconductor behemoth TSMC, CME Group, Intercontinental Exchange, Silvergate, and Overstock.
Drawing more attention
The crypto basket enables the bank’s clients to access the industry’s upside without all the confusion of holding cryptocurrencies and digital coins themselves.
The filing discloses yet another way Wall Street players are looking to give their customers access to the upside of a rapidly-expanding crypto landscape, which CoinGecko now estimates at $1.7 trillion.
The establishment of the structured instrument is perhaps another strong indication that demand among the Wall Street client base for any type of exposure to virtual currency, albeit indirect, is on the rise.
JPMorgan explains that payouts will depend on how the basket of companies performs. The minimum investment is $1,000 and will mature in May next year.
Serious about crypto
The developments come soon after JPM provided its clients with an educational deck to help them get a good grasp of the fundamentals, risks, and potential of bitcoin and cryptocurrencies.
Wall Street is already taking cryptocurrencies very seriously, which largely explains the robust price support underlying bitcoin. The world’s top crypto asset traded as high as $54,888 on Tuesday, figures by TradingView show.
A search of JPM’s history of regulatory filings shows it has never before issued notes in relation to how crypto companies perform. Representatives for JPMorgan did not immediately respond to requests for comments.
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