As MassMutual Invests $100 Million Into Bitcoin, The Demand For Crypto Spikes
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MassMutual, a big institution getting further involved with the crypto industry and a potential competitor to Grayscale, bought $100 million worth of bitcoin recently indicating the demand for the leading coin will most likely be rising. This is according to strategists at JP Morgan Chase, one of the biggest banks in the United States.
On the 11th of December in an investor note, the bank strategists including Nikolaos Panigirtzoglou have indicated that bitcoin adoption is now growing massively into bigger institutions such as insurance companies and pension funds.
According to a report from Bloomberg, companies such as these may not invest massive amounts of money into the industry but even getting involved slightly could have a significant impact.
And to that end, if companies such as these could allocate 1% of the wealth into assets such as bitcoin, the demand for the leading cryptocurrency would grow significantly. He could even rise by $600 billion according to the strategist. That would mean it is more than double the current market capitalisation that the currency has.
The analysts have further said:
“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.”
MassMutual, an insurance company based out in Massachusetts revealed past week on the 11th of December that they had bought 100 million bitcoins. $100 million worth of bitcoin for its general investment account.
With that in mind, the company has said that the investment is just the start of a wide ranged strategy with the end goal of achieving “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”