JPMorgan to launch a crypto-linked equities basket

The financial holding company JPMorgan will launch a new product—a basket of stocks of crypto-linked companies. The corresponding documents have been submitted to the U.S. Securities and Exchange Commission (SEC).

The instrument includes securities of MicroStrategy, Square, PayPal, Riot Blockchain, Nvidia, AMD, TSMC, Intercontinental Exchange, CME Group, Overstock, and Silvergate.

The largest share in the basket, amounting to 20%, is allotted to MicroStrategy securities.

JPMorgan stressed that the new product is not linked to any particular cryptocurrency and may not correlate with movements in the digital-asset market.

Investors will gain exposure to the instrument through [simple_tooltip content=’ценная бумага, доходность которой привязана к цене некоторого базового актива’]structured notes[/simple_tooltip]. Returns will be calculated based on valuations of the companies in the basket, net of a 1.5% fee.

The minimum investment will be $1,000, with the notes maturing in May 2022.

JPMorgan will price the notes on March 26 and launch the product around March 31.

In late 2020, MicroStrategy converted part of its free capital into Bitcoin. The software provider currently owns 91,064 BTC worth more than $4.9 billion.

The payments company Square, as of December 31, 2020, transferred 5% of its cash reserves into Bitcoin.

Earlier, JPMorgan’s head of research Joyce Chan said the bank had recorded demand for the leading cryptocurrency from institutional investors.

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