According to strategists at Giant investment bank JPMorgan, MassMutual’s $ 100 million acquisition of Bitcoin (BTC) indicates that demand for the cryptocurrency will increase further.
JPMorgan strategists, including Nikolaos Panigirtzoglou, announced in an investor note dated December 11 that Bitcoin was allegedly spreading from family offices and wealthy investors to larger investors such as insurance companies and pension funds.
Experts believe insurance companies and pension funds are unlikely to invest large sums in Bitcoin, according to Bloomerg’s report, but even a small amount to the crypto could be significant.
Strategists estimate that Bitcoin demand will rise by $ 600 billion if pension funds and insurance companies in the US, Eurozone, UK and Japan invest 1 percent of their assets in Bitcoin. That amount is almost double the market value of Bitcoin, which currently stands at $ 356 billion.
“MASSMUTUAL’S BITCOIN PURCHASES REPRESENT AN IMPORTANT STEP IN THE PREVALENCE OF CRYPTOCURRENCY AMONG INSTITUTIONAL INVESTORS. “AS OTHER INSURANCE COMPANIES AND PENSION FUNDS FOLLOW THE EXAMPLE OF MASSMUTUAL, IT CAN BE SAID THAT DEMAND WILL INCREASE IN THE COMING YEARS.”
Massachusetts-based insurance company MassMutual announced on December 11 that it had purchased $ 100 million worth of Bitcoin for its General Investment Account. In a statement, MassMutual said the investment was part of its strategy to “provide measured but meaningful access to the growing economic aspect of the increasingly digital world.”