The financial giant JPMorgan Chase has finished paperwork with the SEC to start a debt instrument linked to eleven crypto-focused businesses.
The new debt instrument will give investors exposure to a pool of crypto-centered firms, according to their new filing with the United States SEC.
The firm’s Cryptocurrency Exposure Basket (Mar 2021) is said to be an “unequally weighted pool containing eleven Reference Stocks of companies” that work directly and indirectly with cryptocurrencies.
The instrument divides 20% to MicroStrategy, the firm with 91,064 BTC in its possession. It also gives exposure to Riot Blockchain (15%) and Square (18%), two companies with large exposure to Bitcoin. PayPal Holdings and Nvidia Corporation each make up 15% of the pool.
AMD, Intercontinental Exchange, Taiwan Semiconductor Company, Overstock.com, CME Group and Silvergate Capital are also included in the group.
JPMorgan announced that payouts are based upon how the pool of companies perform. The lowest possible investment is $1,000 with a maturation time of May 2022.
The new investment is one of many options for larger investors to get access to the surging cryptocurrency market. Institutional investors are already rushing to digital currencies, which helps to explain the price support of Bitcoin in recent months. The top digital currency was valued as high as $54,888 this week.
If the recently started Canadian Purpose Bitcoin ETF is any hint, investors are experiencing a big desire for digital assets. The fund had almost $100 million in volume after its opening recently, putting it on the path to go beyond $1 billion in assets after its first week.