JPMorgan offers investors chance to win big if Bitcoin’s price drops next year, but then rockets in 2028
JPMorgan introduced a structured note allowing investors to profit if Bitcoin's price drops next year but surges by 2028, using BlackRock's IBIT ETF as the underlying asset.Summary
JPMorgan Chase has filed a prospectus for a derivative-style investment, a structured note, that lets investors profit based on the future price of Bitcoin, using BlackRock's IBIT ETF as the reference asset. The structure offers a unique payoff: if the IBIT price is at or above a set level in one year, investors receive a guaranteed minimum 16% return and the note is called. If the price is lower after one year, investors hold the note until 2028. If IBIT surpasses a second set price by 2028, investors earn 1.5x their investment with no cap, offering unlimited upside potential if Bitcoin rockets. As downside protection, investors recoup their principal if IBIT is down by no more than 30% in 2028, but they lose the equivalent of IBIT's depreciation if it falls further. JPMorgan warns that investors could lose a significant portion or all of their principal. This product reflects evolving Wall Street views on digital assets, contrasting with CEO Jamie Dimon's past skepticism, and follows a similar complex product offered by Morgan Stanley.
(Source：The Block)