For JP Morgan, the purchase of MassMutual is an indicator of how the interest in demand will continue to grow. The bank values the entry to bitcoin of insurance firms and pension funds.
The investment of the insurance firm MassMutual in bitcoin is the purest example of how the cryptocurrency is gaining more and more ground at the institutional level, according to executives of JP Morgan, the largest bank in the United States.
According to executives such as Nikolaos Panigirtzoglou, interest in bitcoin is spreading, beyond investors in the technology area. Now, that interest transcends insurance firms and pension funds, according to bank executives, cited by Bloomberg.
“MassMutual’s Bitcoin purchases represent another achievement in the adoption of Bitcoin (BTC) by institutional investors,” they assured from JP Morgan through a note to their clients cited by the aforementioned media.
The entry of the insurance firm does not only show a general view of the current situation; in the eyes of JP Morgan, the bank also points to a potential increase in that interest for the future. This is especially true when considering insurance companies and pension funds as generators of the power that impulses bitcoin as a store of value.
“You can see the potential demand is eager to arise in the coming years as other insurance companies and pension funds follow the example of MassMutual,” explained the banking institution.
Although the interest of this type of institutional players shows the potential of bitcoin in the future, traditional investors face regulatory obstacles associated especially with the risks due to the volatility of bitcoin in the market, JP Morgan pointed out.
The same bank has shown increasing interest in bitcoin and the world of cryptocurrencies, to the point of having created its stablecoin, JPM Coin, with which it has recently begun to finance itself.
MassMutual, the newest addition to the institutional rush for bitcoin
Just a few days ago, the insurance firm MassMutual announced the purchase of $ 100 million in bitcoin, which destinations go for its general investment account. Although the figure represents 0.04% of the total capital the company reported, the intention is to gain “a measured but significant exposure to a growing economic aspect of our increasingly digital world”, in the words of MassMutual.
This year it has been relevant because there have already been many institutional players betting heavily on the future of bitcoin. But as JP Morgan points out, the arrival of MassMutual seems to broaden the horizon.
Institutional interest is in consideration by some analysts in the bitcoin environment. They are seeing a determining factor for the price increase that BTC has experienced in recent months. These analysts think this factor could continue to be an element for new price records in the months to come.
Bitcoin is currently trading above $ 19,000 again, after recovering from a correction of up to 7% and after breaking its all-time high on some exchanges just a few weeks ago.
By: Jenson Nuñez.
