Recent purchases of $100 million worth of BTC by MassMutual show that demand for cryptocurrencies will continue to grow, according to strategists at investment bank JPMorgan. In a December 11 note to investors, JPMorgan strategists, including Nikolaos Panigirtzoglou, signaled that bitcoin adoption is expanding from family offices and wealthy investors to larger investors such as insurance companies and pension funds. As Bloomberg reports, experts said that insurance companies and pension funds are unlikely to invest large amounts. However, even if they do dip a toe into the cryptocurrency market, it could have a huge impact on the industry. Strategists calculated that if pension funds and insurance companies in the United States, the Eurozone, the United Kingdom, and Japan allocated 1% of their assets to Bitcoin, demand for BTC would increase by an additional $600 billion. This is nearly double Bitcoin's current market capitalization, which is $356 now billion, according to data from CoinMarketCap. JPMorgan strategists wrote: The BTC purchases made by MassMutual represent another milestone in the adoption of Bitcoin by institutional investors. [...] One can see potential demand coming in the coming years as other insurance companies and pension funds follow MassMutual's lead. Institutional Investments Massachusetts-based insurance company MassMutual on December 11 announced the purchase of BTC for $100 million. According to the company, the investment is part of a strategy to achieve "measured but meaningful exposure to the growing economic aspect of our increasingly digital world." Major institutional investment began in August and September when MicroStrategy bought BTC for $425 million. It was followed by other companies including Square and Stone Ridge. Payments giant PayPal also got into cryptocurrencies. Microstrategy confirmed on Friday that it sold $650 million worth of convertible senior notes at a rate of 0.750% maturing in 2025. This will help the company fund its next investments in Bitcoin. The company currently holds 40,824 BTC, or $734 million as of today. This means that the company is already 260 million in the red since making the investment. Tags bitcoin btc institutions jpmorgan MassMutual
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