Assessing the growing corporate interest in Bitcoin recently, US banking giant JPMorgan reported that there would be a $ 600 billion increase in Bitcoin demand if insurance companies and pension funds in the US, EU region, UK and Japan transferred only 1 percent of their assets to Bitcoin.
Recently, JP Morgan, the giant investment bank that has changed its view of cryptocurrencies, especially Bitcoin, received an assessment of the investment in Bitcoin from Massachusetts Mutual Life, an insurance company. According to the bank, this investment is an indication of corporate interest, which will boom in the coming years.
According to experts, including renowned strategist Nikolaos Panigirtzoglou, the $ 100 million purchase of Mutual Life is the biggest indicator that Bitcoin investment is now moving from family offices and wealthy investors to institutional investors and pension funds. Strategists noted that this change will not be in large sums for the time being, but even small steps are very important:
“MassMutual’s acquisition of Bitcoin is a very important milestone in terms of institutional investors’ adaptation. This demand may increase significantly in the coming years, with other pension funds and insurance companies also stepping in”
Started to be seen as portfolio diversifier
Bitcoin, which stood at the 20 thousand dollar limit at the beginning of December but then retreated, is expected to exceed an all-time high, while experts note that Bitcoin is now being seen as a portfolio diversifier like gold during this period when the dollar has weakened. Some investors are still cautious about BTC because of examples of “volatility and illegal payments” from the past.
“ $ 600 billion in demand if 1 percent goes to Bitcoin”
Strategists noted that if insurance companies and pension funds in the US, EU region, UK and Japan transfer even just 1 percent of their assets to Bitcoin, there will be a $ 600 billion increase in BTC demand. Bitcoin’s current market capitalization is around $ 350 billion.
On the other hand, strategists said that traditional investors such as insurance and pension funds face regulatory problems due to issues such as risk levels and debt liability disputes, so they have imposed a limit on the purchase of Bitcoins.