JP Morgan launches an investment vehicle that allows exposure to public companies focused on crypto
Financial services giant JP Morgan has submitted a prospectus to the US Securities and Exchange Commission (SEC) to launch a new debt instrument linked to corporations related to cryptocurrencies.
New investment initiative related to cryptocurrencies:
According to the introductory prospectus submitted to the SEC, the debt instrument JB Morgan calls the “Cryptocurrency Exposure Basket” will enable investors to allocate funds into a basket of stocks of companies focused on cryptocurrencies. .
Some of the names of these companies include:
"Micro Strategy" headed by "Michael Saylor", which owns more than $ 4.5 billion in bitcoin, "Square" and "Riot" ...
Currently, investors will have access to 11 reference shares of US listed companies that are directly and indirectly involved in the cryptocurrency business.
Companies are chosen based on bitcoin holdings, crypto technology, bitcoin trading, digital payments, and mining products.
According to the deposit, the value of the investment instrument will be priced at approximately $ 984.00 for every $ 1000 of the principal amount.
However, investors will have to pay a discount fee of 1.5% on its due date scheduled for May 5, 2022.
Investment tool "JP Morgan" to attract more investors:
Interestingly, this is the first time that JPMorgan has issued investment vehicles based on the performance of cryptocurrency-linked companies.
The move comes on the heels of massive interest in cryptocurrencies by institutional investors, as the digital asset class continues to rise, outperforming other traditional financial instruments.
Since late last year until now, 11 companies have invested in JPMorgan's "Cryptocurrency Exposure Basket" and generated a large amount of profits.
While investors wishing to take advantage of the JPMorgan offer will not directly invest in cryptocurrencies, as mentioned in the deposit, the new initiative will give them the necessary exposure to the cryptocurrency market, which will inevitably increase their appetite for cryptocurrencies.
The institutional demand for the crypto market has become normal and ineffective as it was in the beginning, as many companies enter every day without significant and clear influence of the prices of the crypto market.