Jpmorgan Believes More Institutions Will Invest Into Bitcoin (btc)

The American multinational investment bank, JPMorgan Chase & Co, believes that bitcoin has grasped the attention of institutional investors, and further purchases will follow. The giant bank highlighted the recent $100 million BTC buy from the insurance company MassMutual as a significant turning point.

The global events that transpired following the COVID-19 outbreak rattled world economies. Whether this is the primary reason, or perhaps bitcoin’s maturation, or the halving, or something entirely different, the fact is that numerous large companies, prominent investors, and institutions began noticing and purchasing sizeable amounts of BTC.

One of the latest such market entrance came from the insurance giant – The Massachusetts Mutual Life Insurance Company (MassMutual). It was reported that the Springfield, Mass-based firm bought $100 million in bitcoin.

JPM outlined the significance of this purchase in its latest report, cited by Bloomberg. The bank’s strategists asserted that MassMutual’s endorsement of BTC suggests “adoption of bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds.”

Although the paper believes that it’s unlikely for insurance firms and pension funds to “ever make high allocations,” it admitted that even small purchases could result in substantial market moves for the cryptocurrency.

JPM’s document continued with examining the potential impact on bitcoin should pension funds and insurance companies indeed proceed with allocating funds in the asset.

The analysts said that even a relatively small purchase of 1% from such firms in the US, Europe, UK, and Japan would result in “additional bitcoin demand of $600 billion.”

Recommended exchange @cedarforex

Presented by @cryptocollabs

#coinbasewallet