Even a small investment by insurance companies and pension funds could be sizeable for Bitcoin.
The fact that MassMutual Bitcoin ( BTC ) worth $ 100 million shows that the demand for cryptocurrencies will continue to grow, according to strategists at major investment bank JPMorgan
In a notice to investors on December 11, JPMorgan strategists, including Nikolaos Panigirtzoglou, stated that Bitcoin adoption would now expand from family businesses and wealthy investors to larger investors such as insurance companies and pension funds.
As reported by Bloomberg , the experts said it was unlikely that insurance companies and pension funds would invest large amounts in Bitcoin. But even a small shift towards crypto could be sizeable.
If pension funds and insurance companies in the United States, the euro zone, the UK, and Japan invested 1 percent of their assets in Bitcoin, Bitcoin demand would grow by $ 600 billion, the strategists calculated.
That’s almost double the market capitalization of Bitcoin. According to data from CoinMarketCap, this is currently $ 356 billion
JPMorgan strategists wrote: „The Bitcoin purchases from MassMutual are another milestone in Bitcoin acceptance by institutional investors. […] You can see the potential demand that could arise in the coming years when other insurance companies and pension funds are following the example of MassMutual.“
Massachusetts-based insurance company MassMutual announced on Dec. 11 that the company had bought $ 100 million in bitcoin and added it to its general investment account. MassMutual told Cointelegraph that the investment was part of an overall strategy. The aim of this strategy is to „achieve a moderate but meaningful commitment in a growing economic aspect of our increasingly digital world.“
In addition to MassMutual, the large institutional company MicroStrategy has also bought Bitcoin. The company announced plans to raise $ 400 million in a securities offering to invest the money in BTC. MicroStrategy has made Bitcoin to its primary asset, after the company in August and September Bitcoin worth 425 million US dollars to buy has.