Large investment bank JPMorgan has launched a new product that provides an opportunity for indirect investments in cryptocurrencies – through the purchase of shares of companies associated with the industry.
According to the application filed with the US Securities and Exchange Commission (SEC), companies buying cryptocurrencies or working in the digital asset industry will be selected to the basket. So, it included MicroStrategy, which owns more than 90,000 BTC, payment firms Square and PayPal, Riot Blockchain mining company, manufacturers Nvidia, AMD, TSMC, as well as the CME exchange.
Under this initiative, bonds will be issued at a price of $ 1,000 per share. The pricing date is set for March 26, 2021, the issue will take place “around March 31,” and the offer and redemption dates for the bonds are set for May 2 and 5, 2022, respectively. At the same time, JPMorgan will take a 3% commission on bonds redemption, regardless of the total profitability of the basket.
“It should be emphasized that when buying bonds, investors do not buy cryptocurrencies directly, and the efficiency of the basket may not correlate with the price of any particular cryptocurrency, for example, bitcoin,” the document says.
The new product launch underscores the interest of Wall Street financial giants in the cryptocurrency industry. In early March, another major investment bank, Goldman Sachs, launched a cryptocurrency trading platform for its clients.
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