JP Morgan have supported the latest $100 million of Bitcoin investment by MassMutual. According to JP Morgan, the investment by Massachusetts Mutual Life Insurance Co. in Bitcoin have the potential for more institutional demand for the cryptocurrency in the coming years.
Recently, MassMutual buys this Bitcoin through a New York-based fund management company called NYDIG. Not only Bitcoin but it has also acquired a $5 million minority equity stake in NYDIG.
MassMutual the 169 year old investment company invests in Bitcoin when the price was in the sell pressure zone.
According to the strategists at JP Morgan, the $100 million Bitcoin purchase suggests that demand is increasing from family offices to wealthy investors. 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.”
According to CoinMarketCap the market cap of Bitcoin is $356 billion. However, the strategists said, “If pension funds and insurance companies in the U.S., euro area, U.K. and Japan allocate 1% of assets to Bitcoin, that would result in additional Bitcoin demand of $600 billion.”
Not only MassMutual other companies are also investing millions in digital currency. Square Inc. the payments firm invested $50 million in Bitcoin for its corporate treasury in October. Also, the tech company MicroStrategy Inc. invested around $425 million this year.
At press time Bitcoin (BTC) is trading at $19,177.23 USD (0.02%). The 24h trading volume and market cap is $24,460,938,576 USD and $355,961,841,866 USD respectively. However the total market cap of cryptocurrency is $561,098,012,354 USD according to CoinMarketCap. The dominance of BTC in the cryptocurrency market is 63.4%