Wall Street giant Jeepman Morgan has applied to the Securities and Exchange Commission (SEC) to launch a debt instrument related to 11 companies that have invested in digital currencies. A debt instrument is a commitment that enables the supplier to provide the required budget by creating a debt with a repayment commitment to the lender.
to the the report Coin Telegraph, the SEC’s new JPMorgan Chase application form shows that the banking giant has developed a new debt tool that allows investors to directly use a portfolio of digital currency companies.
GPM Morgan’s Digital Currency Portfolio (March 2021), as defined by the bank, is an unequal weight portfolio of 11 reference stocks of listed companies that are directly or indirectly related to digital currencies.
The tool allocates 20% to Microstrategy Data Analysis Company, which has 91,064 bitcoins in its financial balance sheet. The portfolio also provides direct connection to Square by 18% and Riot Blockchain by 15%. These two companies have significant amounts of bitcoin assets. Nvidia Corporation and PayPal Holdings each account for 15 percent of the portfolio.
Also included in the basket are Advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock and Silvergate Capital. .
The identifier of this basket announces:
The weight of reference stocks was determined in part by the extent to which these companies were associated with Bitcoin, correlated with Bitcoin, and their liquidity.
JPMurgan has announced that dividends will be paid based on the performance of the corporate portfolio. The minimum investment is $ 1,000 with a maturity date of May 2022 (May 1401).
This new product is one of the ways institutional investors can access the growing digital currency market. Wall Street is now increasingly moving towards the use and enjoyment of digital currencies, and this largely justifies the strong support behind Bitcoin.
If we take the newly launched Purpose Bitcoin Bitcoin Exchange as an example, traditional investors have become very interested in digital assets. The Canadian negotiable fund raised nearly $ 100 million at the start of its run earlier this month and is now on track to raise $ 1 billion in assets after its first week of launch.