S&P Global recognizes JP Morgan Chase as the largest bank in the United States and 5th largest in the world based on its enterprise value of $3.213 trillion. The multinational investment bank and financial services holding company has been famous for making businesses more profitable and gaining control of them. While the world is knee-deep into crypto assets and cryptocurrency trading, the financial giant has again brewed up a scheme to facilitate more investors into the crypto arena.
It should be noted that structured notes are debt security or debt obligation that manages security’s risk-return profile. There are two main underlying factors for structured notes: bond component and derivative component. The prospect investors have the chance to find that balance of bond and derivative components in the JP Morgan structured notes.
The transition of Traditional Financial Organizations into Decentralized Investment Models
JP Morgan has submitted a new application with the US Securities and Exchange Commission to provide a brief on the exposure to crypto via cryptocurrency, Bitcoin holdings, crypto mining products, technology products, digital payments, and Bitcoin trading. The JP Morgan Cryptocurrency Exposure Basket consists of stocks from 11 different US-listed companies related to crypto-assets.
JP Morgan has recently joined the cryptocurrency space. With minimum liquid assets worth $10 million, the accredited banking clients of JP Morgan were being facilitated by the financial giant to find more opportunities in the crypto markets recently. This behavior is in line with Goldman Sachs that has opened its gate to crypto trading after noticing the rising popularity of cryptocurrencies among its user base.
Crypto Exposure Evaluation and Swiss Stock Exchange
Both JP Morgan and Goldman Sachs and some other big names like ICAP, UBS has already invested in 21Shares’ Polkadot Exchange Trading Product (ETP). This ETP is going to provide exposure to Polakdot’s DOT cryptocurrency for the clients. This way, the investment giants would be able to gain Swiss Stock Exchange-based cryptocurrency exposures without having to worry about custody.
On the other hand, JP Morgan Cryptocurrency Exposure Basket stocks 20% in MicroStrategy, 18% in Square Inc., 15% in NVIDIA Corporation, 10% in PayPal, and the remaining 5% in Intercontinental Exchange (ICE), Overstock.com, Silvergate Capital, CME Group, and most importantly US-based depositories in Taiwanese Semiconductor Manufacturing Limited Company. These structure notes would mature on May 5th, 2020, and have a minimal initial evaluation of $1,000.