MassMutual’s bitcoin push as door opener for big investors, says JPMorgan
The flood of money to cope with Corona is huge. Many investors therefore rely on gold as protection against feared crises and inflation. Low interest rates are yet another argument in favour of the precious metal about which banker John Pierpont Morgan once said, „Only gold is money. Everything else is credit.“ Two DJE funds have gold in particular focus.
Investment strategists at JPMorgan see growing demand for cryptocurrencies in the recent US$100 million investment in Bitcoin by US insurer MassMutual.
US$100 million – That’s how much US insurer MassMututal invested in Bitcoin on 11 December. As Bloomberg reports, investment strategists from JPMorgan spoke out on the same day. In an investor note, they commented that the insurance company’s entry shows that Bitcoin System adoption is now spreading from family businesses and wealthy investors to larger investors, such as insurance companies and pension funds.
According to JPMorgan experts, it is unlikely that large investors will invest large sums in the cryptocurrency. But even small investments could have an enormous impact on Bitcoin and Co. The strategists of the largest US bank made the following calculation: If pension funds and insurance companies in the USA, the Eurozone, Great Britain and Japan invested just 1 per cent of their assets in Bitcoin, this would lead to an additional Bitcoin demand of 600 billion dollars. That is almost double the current market capitalisation of Bitcoin, which is over $360 billion, according to Coingecko.
MassMutual sees future in Bitcoin
Looking at the 2.3 billion US dollars that MassMutal manages, the BTC position still makes up a comparatively small share at 100 million US dollars. At the same time, the life insurer bought minority shares in NYDIG for five million. This is a Bitcoin service provider for institutional clients. The investment in NYDIG makes additional purchases in the form of bitcoin likely. JPMorgan’s forecast certainly contributes to this