JPMorgan’s $21.374 million structured note linked to the Bitcoin ETF IBIT failed to meet its auto-call trigger at $63.69 on August 26, with IBIT closing at $44.46, approximately 30.2% below the required level. The note matures in August 2028, pays no periodic interest and exposes investors to two additional years of issuer credit risk. If IBIT finishes above $47.7675 in 2028, principal is preserved, but a finish below that threshold results in losses exceeding 25%. JPMorgan and Barclays are now marketing new structures featuring 6% annual deductions, floating financing costs and worst-of mechanics that concentrate risk on whichever crypto fund underperforms.
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