Investment in cryptocurrency is increasing as the adoption of digital assets is high due to the entry of big players in the industry. It would be very progressive for digital assets space if insurance and pensions firms accept it with open arms.
JPMorgan Praises MassMutual’s Investment Initiative
JPMorgan, one of the largest banks in the United States, welcomes MassMutual’s investment over the top digital asset. The strategists at JP Morgan accept the changing attitude of big institutions, such as pension firms and insurance companies, towards crypto investment opportunities. Nikolaos Panigirtzoglou from the giant investment bank wrote in an investor note that Bitcoin’s adoption is now at a high rate.
The experts at JP Morgan claim that insurance companies cannot dive completely into the crypto industry but a small investment from them makes a great change for the world’s leading digital asset.
Bloomberg reports that Bitcoin’s market cap could witness the addition of $600 billion if insurance and pension firms from the US, UK, Europe, and Japan decide to dedicate 1% of their total capital value for the flagship cryptocurrency.
“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,” said strategists at JP Morgan.
On December 11, giant insurance company MassMutual announced to purchase Bitcoin worth $100 million. According to the official statement, MassMutual called it a “meaningful exposure.”
Massachusetts Mutual Life Insurance Co. made an investment deal of $100 million through NYDIG. CEO of NYDIG, Ross Stevens, said that MassMutual was not the first company to invest in Bitcoin as many other giant companies in the financial world have made a significant investment over crypto-assets and other instruments related to cryptocurrency.
The allocation of Massachusetts Mutual Life Insurance Co. over Bitcoin is only 1% of its total value which is standing at $235 billion. It is one of the first insurance firms who are going to test crypto products, such as Bitcoin.
Giant investment firms are redefining their portfolio by creating a special space for digital products. As per the latest reports, MicroStrategy may invest $400 million in Bitcoin. In its previous purchase, it invested a total of $425 million in the world’s leading cryptocurrency.
JP Morgan’s positive remarks about the flagship cryptocurrency show that institutional demand in Bitcoin is surging high.