JPMorgan: MassMutual’s Bitcoin (BTC) Bet Hints Rising Institutional Demand

JPMorgan strategists have backed the recent $100-million Bitcoin investment by insurance giant Massachusetts Mutual Life. Last week, the 169-year-old investment giant announced its purchase of Bitcoin through NYDIG. The investment comes just at a time when Bitcoin was under selling pressure.

JPMorgan says this is a clear indication of the rising appetite for Bitcoin investment among institutional players. In a note to clients last Friday, JPMorgan strategists note that Bitcoin adoption is spreading among wealthy investors, family offices, family offices, and pension funds. The strategists added:

“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors. One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”

JPMorgan notes that even if the size of investments by these financial giants is smaller, a small shift is also significant. The strategists added that even if 1% of funds from pension funds and insurance companies across the U.S, Europe, Japan, and the U.K comes to Bitcoin, it would account for $600 billion worth of investment.

Bitcoin (BTC) Becoming The Choice of Institutions

Every passing week, institutional players are upping-the-ante when it comes to making fresh investments in Bitcoin (BTC). Over the last few months, several hundred million dollars of institutional wealth has entered Bitcoin (BTC). Just at the time when BTC was under selling pressure last week, there were two big announcements.

Apart from MassMutual, business intelligence firm MicroStrategy also announced a $650 million worth of convertible notes offering as it intends to buy more Bitcoins. Before this, the company had already invested $475 million over the last few months. The latest announcement will take MicroStrategy’s total Bitcoin investment above $1 billion.

Over the last 48 hours, Bitcoin has entered into recovery mode and moved back above $19,000 levels. At press time, Bitcoin is trading at $19,112 with a market cap of $354 billion. The latest Bitcoin price recovery suggests that it has yet again entered the bull market.