The leading investment bank estimates that institutions will invest around $ 600 billion in Bitcoin
According to a recent Bloomberg report, the bank predicts that many companies will soon be investing in Bitcoin (BTC). This results in a potential inflow of up to $ 600 billion into the digital asset. To reach this number, insurance companies from Asia, Europe and the US must invest 1% of their assets in BTC.
The claim comes after insurance company MassMutual made a $ 100 million purchase from BTC. The insurance company has made sizeable investments in Bitcoin, even though its goal was to get involved in the crypto sector. Crypto analysts believe that institutional demand for digital assets is increasing.
The domino effect
Massachusetts Mutual Life Insurance Company isn’t the only institution that has invested its funds in Bitcoin. MicroStrategy and Square have already acquired Bitcoin worth millions. These recent investments suggest wealthy investors and even huge institutions are looking for a slice of BTC.
Regarding the acquisition of the Massachusetts-based company to buy bitcoin, JPMorgan quantitative strategist Nikolaos Panigirtzoglou said, “MassMutual’s bitcoin purchases are another milestone in the adoption 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. “
Panigirtzoglou claims that MassMutual could be a trendsetter and its BTC foray could lead other companies to follow Bitcoin’s lead.
While Panigirtzoglou’s views on Bitcoin seem optimistic, the bank’s executive director Jamie Dimon seems to think differently.
Last week, JPMorgan strategists, including Panigirtzoglou, claimed that the massive adoption of crypto in mainstream funding is at the expense of the gold market.
Bitcoin recently passed its all-time high after a strong price rally. Prices have fallen slightly since then, but the market is still bullish. The leading cryptocurrency has a current market capitalization of $ 355 billion and continues to dominate the cryptocurrency sector. Gold, on the other hand, has seen massive outflows since October.