JP Morgan – Rising Crypto Demand is Evident from Bitcoin Purchase by MassMutual
The purchase of Bitcoin (BTC) worth $100 million by MassMutual signals rising demand for cryptocurrencies, as per analysts at top investment bank JPMorgan.
In a note to clients, JP Morgan analysts, including Nikolaos Panigirtzoglou, stated that Bitcoin adoption has started extending from large scale individual investors and family run business to larger investors such as insurers and pension funds.
As mentioned by Bloomberg, professionals stated that insurers and pension funds are not anticipated to purchase huge quantities of Bitcoin, but even a minute transformation towards cryptocurrency could be substantial.
In the US, the UK, Eurozone and Japan, even if insurers and pension funds set aside 1% of their resources for purchase of Bitcoin, the market cap of the numero uno crypto will increase by $600 billion, as per computation by strategists.
The assessed figure is roughly twice that of Bitcoin’s market capitalization, which is $356 billion at the time of writing this article.
In a note to clients, JPMorgan strategists wrote, “MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors. […] One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
Insurer MassMutual, headquartered in Massachusetts, has stated that the enterprise purchased $100 million worth Bitcoin for its general investment ledger. MassMutual has stated that the purchase of Bitcoin is one among a long-term objective of attaining “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”
Entry of MassMutual into crypto sector, specifically into Bitcoin, has come against the backdrop of top institutional firm MicroStrategy intending to make a $400 million worth offering of securities for adding more Bitcoins to its treasury portfolio.
MicroStrategy has also announced that Bitcoin is one of its key investment vehicles after buying Bitcoin worth $425 million in August and September.