Summary
- JPMorgan said it is preparing to launch a structured bond linked to the performance of BlackRock's Bitcoin ETF IBIT.
- Investors' returns will vary with IBIT price movements, and it said the product includes a guaranteed minimum 16% return and principal protection.
- JPMorgan said the product reflects institutional demand for IBIT and signals an expansion of its Bitcoin-based financial products line.
JPMorgan Chase is preparing to launch a structured bond linked to the performance of BlackRock's Bitcoin (BTC) ETF IBIT. It is a derivative-type product that guarantees a minimum return while allowing returns to vary according to IBIT price fluctuations.
On the 25th (local time), crypto media The Block reported that JPMorgan submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) for a new structured bond with IBIT as the underlying asset. The product is broadly structured into a 1-year automatic early redemption (auto-call) scenario and a scenario maturing in 2028.
According to the prospectus, if the 1-year auto-call condition is met, a minimum fixed return of 16% is guaranteed regardless of market conditions. It also includes a protective mechanism that prevents principal loss even if the IBIT price falls by up to 30%. However, there is a cap on returns, and if IBIT falls by more than 30%, principal loss will occur.
The product is designed to reflect IBIT's high market recognition and institutional demand, and is interpreted as a signal that JPMorgan is expanding its line of Bitcoin-based financial products.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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