According to JPMorgan, the purchase of MassMutual Bitcoin proves that the demand for crypto is increasing

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MassMutual’s purchase of Bitcoin (BTC) worth $ 100 million shows that demand for cryptocurrency will continue to grow, according to strategists at major investment bank JPMorgan.

In a December 11 investor note, JPMorgan strategists such as Nikolaos Panigirtzoglou reportedly suggested that the adoption of Bitcoin should now be expanded from family offices and high net worth investors to larger investors such as insurance companies and pension funds.

Insurance companies and pension funds are unlikely to invest large amounts in Bitcoin, according to Bloomberg, but even a small shift towards crypto could be significant.

If pension funds and insurance companies in the US, euro area, UK and Japan allocated 1% of their assets to bitcoin, bitcoin demand would increase by an additional $ 600 billion, the strategists said. This is almost double the market cap of Bitcoin, which is $ 356 billion at the time of publication, according to data from CoinMarketCap.

JPMorgan strategists wrote, “MassMutual’s Bitcoin purchases are another milestone in the introduction of Bitcoin by institutional investors. […] One can see the potential demand that could emerge in the coming years if other insurance companies and pension funds follow MassMutual’s lead. “

Massachusetts-based insurance company MassMutual announced on Dec. 11 that the company had purchased $ 100 million in Bitcoin for its general investment account. MassMutual told Cointelegraph that the investment was part of a comprehensive strategy aimed at achieving “a measured yet meaningful commitment to a growing economic aspect of our increasingly digital world.”

MassMutual’s entry into Bitcoin takes place amid large institutional actor MicroStrategy, which is planning a $ 400 million security offering for an investment in BTC. MicroStrategy introduced Bitcoin as a main component after purchasing Bitcoin worth $ 425 million in August and September.