MassMutual’s Bitcoin advance as a door opener for large investors

16. Dezember 2020 Bitcoin

JPMorgan’s investment strategists see a growing demand for cryptocurrencies in the US insurer MassMutual’s recent $ 100 million investment in Bitcoin.

100 million US dollars – This is how much US insurer MassMututal invested in Bitcoin on December 11th

Like Bloomberg reported, JPMorgan investment strategists spoke up on the same day. In an investor announcement, they commented that the insurance company’s entry shows that Bitcoin acceptance will now expand from family businesses and wealthy investors to larger investors such as insurance companies and pension funds.

According to the experts at JPMorgan, it is unlikely that large investors would invest larger sums in the cryptocurrency. But even small investments could have an enormous impact on Bitcoin and Co. The strategists of the largest US bank made the following calculation: If pension funds and insurance companies in the USA, the euro zone, Great Britain and Japan invested only 1 percent of their assets in Bitcoin, this would lead to an additional Bitcoin demand of 600 billion dollars. That’s almost double Bitcoin’s current market cap, which Coingecko says is over $ 360 billion.

MassMutual sees the future in Bitcoin

With a view to the 2.3 billion US dollars that MassMutal manages, the BTC position at 100 million US dollars still makes up a comparatively small proportion. At the same time, the life insurer bought minority shares in NYDIG for five million. This is a bitcoin service provider for institutional customers. Investing in NYDIG makes Bitcoin acquisitions likely. JPMorgan’s forecast certainly helps.