JP Morgan: MassMutual Purchase Shows Growing Institutional Demand For Bitcoin

Key facts:
For JP Morgan, the purchase of MassMutual is a sign that interest will continue to grow.
The bank values ​​the entry to bitcoin of insurance firms and pension funds.

The investment of the insurance firm MassMutual in bitcoin is an example of how the cryptocurrency is gaining more and more ground at the institutional level, according to executives of JP Morgan, the largest bank in the United States.

According to executives such as Nikolaos Panigirtzoglou, interest in bitcoin is spreading, beyond investors in the technology area . Now, that interest transcends insurance firms and pension funds, according to bank executives, cited by Bloomberg.

"MassMutual's Bitcoin purchases represent another milestone in the adoption of Bitcoin (BTC) by institutional investors," they assured from JP Morgan through a note to their clients cited by the aforementioned media.

The entry of the insurance firm is not only a sample of the current situation, in the eyes of JP Morgan. It also points to a potential increase in that interest for the future , especially considering insurance companies and pension funds as catalysts for bitcoin's power as a store of value.

"You can see the potential demand that could arise in the next few years as other insurance companies and pension funds follow the example of MassMutual," explained the banking institution.

Although the interest of this type of institutional players shows the potential of bitcoin in the future, traditional investors face regulatory obstacles associated especially with the risks due to the volatility of bitcoin in the market , JP Morgan pointed out.

The same bank has shown increasing interest in bitcoin and the world of cryptocurrencies, to the point of having created its own stablecoin, JPM Coin, with which it has recently begun to finance itself.

No comments: