JP Morgan, the giant investment bank that recently changed its perspective on cryptocurrencies, especially Bitcoin, received an assessment of the investment in Bitcoin from the Insurance Company Massachusetts Mutual Life. According to the bank, this investment is an indicator of corporate interest that will explode in the coming years.
According to experts, including renowned strategist Nikolaos Panigirtzoglou, the $ 100 million Mutual Life purchase 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 large sums for now, but even small steps are very important:
“MASSMUTUAL’S ACQUISITION OF BITCOIN IS A VERY IMPORTANT MILESTONE IN THE ADOPTION OF INSTITUTIONAL INVESTORS. IN THE COMING YEARS, WITH THE PARTICIPATION OF OTHER PENSION FUNDS AND INSURANCE COMPANIES, THIS DEMAND MAY INCREASE SIGNIFICANTLY.”
Started to be seen as portfolio diversifier
Bitcoin, which reached the $ 20,000 limit at the beginning of December but later retreated, is expected to exceed an all-time high, while experts note that Bitcoin is now seen as a portfolio diversifier like gold. Some investors are still wary of BTC because of past examples of” surge and illegal payments.”
“If 1 percent switches to Bitcoin, there will be $ 600 billion in demand”
Strategists said there would be a $ 600 billion increase in BTC demand if insurance companies and pension funds in the US, EU territory, the UK and Japan transferred just 1 percent of their assets to Bitcoin. Bitcoin’s current market capitalization is around $ 350 billion.
Strategists, on the other hand, noted that traditional investors such as insurance and pension funds have regulatory problems due to issues such as risk levels and debt liability disputes, so they put limits on buying Bitcoin.