JPMorgan: MassMutual s Bitcoin Foray Signals Widening Demand
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J P Morgan says insurer s bitcoin foray shows rising demand by institutions
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A recent investment in
Bitcoin by Massachusetts Mutual Life Insurance Co. highlights the potential for additional institutional demand for the cryptocurrency in coming years, according to
The $100 million purchase suggests adoption of Bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds, strategists including Nikolaos Panigirtzoglou said in a note Friday. The latter two are unlikely to ever make high allocations, but even a small shift toward the cryptocurrency could be significant, according to the strategists, according to
Bloomberg.
“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors,” the strategists said. “One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
Updated Dec 14, 2020 at 7:33 p.m. UTC
MassMutual’s Bitcoin Buy May Presage $600B Institutional Flood: JPMorgan
JPMorgan analysts have said the recent bitcoin purchases by Massachusetts Mutual Life Insurance Co. are a sign of growing mainstream acceptance for the cryptocurrency.
“MassMutual’s bitcoin purchases represent another milestone in the bitcoin adoption by institutional investors,” JPMorgan’s strategists said, according to Bloomberg on Monday.
“One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example,” they added.
On Thursday, the 169-year old insurance firm announced bitcoin purchases worth $100 million, as well as a $5 million equity stake in NYDIG – a financial services firm focused on bitcoin with $2.3 billion in the asset under management.