JPMorgan Cryptocurrency Exposure Basket Marks Turning Point

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  • JPMorgan has filed with the SEC for a debt instrument featuring crypto-exposed companies
  • The JPMorgan Cryptocurrency Exposure Basket will feature MicroStrategy, Square, and Nvidia, among others
  • The development marks a turning point in the bank’s attitude toward cryptocurrencies

JPMorgan’s transformation from anti to pro-crypto institution is one of the more unexpected twists of this remarkable bull market, and their positivity has manifested itself in a filing for a debit instrument linked to crypto-exposed companies. The JPMorgan Cryptocurrency Exposure Basket will track 11 companies, including Nvidia, MicroStrategy, and Square, and means that investors can have exposure to the cryptocurrency market without buying in themselves. The move marks a definitive turning point in the relationship between JPMorgan and cryptocurrencies.

JPMorgan Cryptocurrency Exposure Basket Follows Sentiment Shift

News of the JPMorgan Cryptocurrency Exposure Basket came via a filing with the Securities and Exchange commission yesterday. Until recently JPMorgan was famous in the crypto world for being anti-crypto, with the negative attitude coming from its CEO, Jamie Dimon, who has castigated Bitcoin on a regular basis since 2017. The bank has typically followed suit, but began to seemingly change its mind last year when it suggested that in recovering from the massive market crash this time last year, the crypto market had passed its first “stress test”.

Since then, nothing but a steady stream of praise has emitted from the bank, with Bitcoin’s potential growth and its status as a hedge to regular investments being among the reasons why it has turned bullish. The bank has stopped short of offering any crypto-related services however, with the JPMorgan Cryptocurrency Exposure Basket being the first such move it has made in such a direction.

No Tesla Among Initial Holdings

In the filing for the JPMorgan Cryptocurrency Exposure Basket, the bank says that the selected companies will feature “businesses that we believe to be, directly or indirectly, related to cryptocurrencies or other digital assets, including as a result of bitcoin holdings, cryptocurrency technology products, cryptocurrency mining products, digital payments or bitcoin trading.”

The bank also stated in the filing that MicroStrategy, Square, Riot Blockchain, and Nvidia will make up 68% of the initial JPMorgan Cryptocurrency Exposure Basket, although interestingly Tesla was not included in this list. The basket could also be subject to change as and when other suitable companies hop aboard the crypto train.