MassMutual’s $100 Mln Bitcoin [BTC] purchase reveals that the demand for cryptocurrency is going to be growing further, consistent with strategists at major investment bank JPMorgan.
Within an official investor note on 11th Dec., JPMorgan strategists along with Nikolaos Panigirtzoglou reportedly revealed that Bitcoin adoption is now expanding from family offices and wealthy investors to greater investors like insurance firms as well as pension funds.
In line with a recent official report by Bloomberg, the experts added that insurance firms and pension funds are unlikely to take a position large amounts in Bitcoin, but even a little shift toward crypto might be significant.
If pension funds and insurance firms within the U.S., Euro area, the U.K., and Japan allocate 1% of their assets to BTc, Bitcoin demand would grow by a further $600 Bln, the strategists calculated. This is often almost double Bitcoin’s market capitalization, which stands at $356 Bln at publishing time, consistent with data from CoinMarketCap.
JPMorgan strategists added, “MassMutual’s BTC purchases represent another milestone within the Bitcoin adoption by institutional investors. […] One can see the potential demand that would arise over the approaching years as other insurance companies and pension funds follow MassMutual’s example.”
Massachusetts-based insurance firm MassMutual announced on 11th Dec. that the corporate bought $100 Mln in Bitcoin for its general investment account. MassMutual adds that the investment is a component of a broad strategy with the goal of achieving “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”
MassMutual’s raid Bitcoin comes amid leading institutional player MicroStrategy planning a $400 Mln securities offering to take a position in BTC. MicroStrategy adopted BTC as its primary asset after buying $425 Mln worth of BTC earlier in August and September.