Gain Exposure to Coinbase with 40% Annual Coupon and Partial Downside Protection
• Marex Solutions, a derivatives-focused division of the London-based financial services provider Marex, has issued a Coinbase (COIN) linked structured product.
• This six-month barrier reverse convertible (BRC) note offers a guaranteed annual 40% coupon paid monthly, providing holders with regular cash flow.
• The note has a predefined „barrier“ at 66% of the Nasdaq-listed stock’s price, and if the barrier is hit or breached, the partial downside protection disappears, and the holder will be allocated COIN shares at $25.
Marex Solutions, a derivatives-focused division of the London-based financial services provider Marex, recently unveiled a Coinbase (COIN) linked structured product that offers enhanced coupons in return for only partially protecting capital risk on the cryptocurrency exchange’s shares. Investors have been drawn to the product due to Coinbase’s increasing market share in the wake of rival FTX’s collapse.
The six-month barrier reverse convertible (BRC) note issued Wednesday by Marex’s FCA regulated entity Marex Financial offers a guaranteed annual 40% coupon paid monthly, providing holders with regular cash flow. It also has a predefined „barrier“ at 66% of the Nasdaq-listed stock’s price – $37.8 on the issue date. As long as the shares stay above $25 during the term, Marex Financial will repay the invested amount in full at expiry. If the barrier is hit or breached, the partial downside protection disappears, and the holder will be allocated COIN shares at $25, exposing them to market vicissitudes.
Ilan Solot, from Marex Solutions, said that the structured product is an attractive option for investors who prefer to express their view on Coinbase via structured products. He said that the product offers a „unique way to participate in the growth of the leading crypto exchange, while also offering a competitive return and the ability to benefit from high levels of liquidity.“
The product has been issued with a minimum denomination of £50,000 and is available to both institutional and retail investors. It is being sold by Marex Solutions‘ network of brokers, including Bank of America, Goldman Sachs, and JP Morgan.
Overall, the Coinbase-linked structured product is an attractive option for investors seeking to benefit from the growth of the leading crypto exchange while also enjoying a competitive return and high levels of liquidity.