JP Morgan

JPMorgan to Launch ‘Basket’ Investment Product Tied to Bitcoin-linked Stocks

JP Morgan

Wall Street investment bank giant JPMorgan Chase & Co. has filed to launch a debt instrument linked to a basket of crypto stocks like MicroStrategy and Nvidia. 

With the new investment product, Cryptocurrency Exposure Basket, JPMorgan is giving its clients a way to invest in crypto-related publicly traded companies, instead of the cryptocurrencies. 

The basket of the proposed investment product includes eleven crypto-focused stocks, such as MicroStrategy (20%), Square (18%), Riot Blockchain and Nvidia at 15%, PayPal at 10%; and AMD, TSMC, Intercontinental Exchange, CME Group, Overstock, and Silvergate Capital each making up 5% or less.

In the regulatory filings with the Securities and Exchange Commission, JPMorgan also for the first time mentioned the word “Bitcoin” in an official public document. 

JPMorgan stresses in the product description that it does not invest directly in any particular cryptocurrency, including Bitcoin (BTC), and that performance of the notes is not tied to performance in the digital asset market itself.

 

Cathie Wood Sees Bitcoin Becoming Portfolio Mainstay

JPMorgan’s proposed investment product is another sign of Wall Street players looking to give their clients access to the upside of a booming crypto market.

Bitcoin gently retreated Wednesday after breaking through the $55,000 level. At the time of writing (10:25 a.m. in Hong Kong), Bitcoin is trading at $54,089.22, up 1.2% over the previous 24 hours.

With the growing institutional interest, Bitcoin and other cryptocurrencies could eventually become part of the recommended portfolio for everyday investors, ARK Invest’s Cathie Wood said in an CNBC interview.

She believes volatile cryptocurrencies could stabilize and eventually behave like bonds, noting that the price of bitcoin is most closely correlated with real estate prices at the moment. 

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