JPMorgan - Traditional Financial Firms In Danger Of Falling Behind In Digital Finance.
2021-03-10 | Mike Hallen
Just a few weeks after JPMorgan Chase outlined a report warning that traditional financial firms are
in danger of falling behind in digital finance,
the leading United States bank is looking to issue debt associated with crypto-focused firms.
J.P. Morgan Cryptocurrency Exposure Basket, the
incoming debt instruments, is long on MicroStrategy [20%], Square [18%], Riot Blockchain [15%] as well as chipmaker NVIDIA [15%] with positions in 11 firms total. It
doesn't invest directly in crypto assets,
consistent with the prospectus.
The basket firms “operate businesses that we believe to be, directly or indirectly,
associated with crypto assets or other virtual assets, including as a
result of bitcoin [BTC, -1.05%] holdings, cryptocurrency technology products, crypto mining products, digital payments or bitcoin trading,” JPMorgan added
within the prospectus.
The filing reveals
yet one more way Wall Street players are investigating
to offer their clients access to the upside of a booming cryptocurrency market, that CoinGecko now estimates at $1.7 trillion.
The prospectus documents state the notes
can payout supported the basket firms’ performance less a 1.5% deduction - essentially the fee. They cost a min of $1k min and have a maturation date of May 2022.
A search of JPMorgan’s history of regulatory filings outlined the mega-bank has never before issued notes
associated with the performance of
cryptocurrency firms. However, at the reporting time, the representatives for the bank
didn't immediately
answer.
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