JPMorgan strategists have backed the recent $100-million Bitcoin investment by insurance company Massachusetts Mutual Life (MassMutual). Last week, the 169-year-old investment giant company announced that it purchases Bitcoin through NYDIG. The announcement comes just at a time when Bitcoin was under selling pressure.
JPMorgan believes MassMutual is a clear indication of the increasing appetite for Bitcoin investment among institutional players. In a note to clients last Friday, JPMorgan strategists say that Bitcoin adoption is spreading among wealthy investors, 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 states that even if the size of investments by these financial giants is smaller, a small shift is also notable. 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 BTC, it would account for $600 billion worth of investment.
Every passing week, institutional players are upping-the-ante when it comes to investing in Bitcoin (BTC). Over the last few months, several hundred million dollars of institutional money has entered Bitcoin (BTC). Just at the time when BTC was under selling pressure last week, there were two important announcements of purchases.
Apart from MassMutual, business intelligence company MicroStrategy also announced a $650 million worth of convertible notes offering as it aims to buy more Bitcoins. Before this, the firm had already invested $475 million over the last few months. The latest announcement will take MicroStrategy’s total investment in bitcoin above $1 billion.
Over the last two days, Bitcoin has entered into recovery mode and moved back above $19,000 levels. At the time of writing, Bitcoin is trading at $19,112 with a market capitalization of $354 billion. The latest Bitcoin price recovery suggests that it has yet again entered the bullish market.