JPMorgan analysts have said the recent bitcoin purchases by Massachusetts Mutual Life Insurance Co. are a sign of growing mainstream acceptance for the cryptocurrency.
- “MassMutual’s bitcoin purchases represent another milestone in the bitcoin adoption by institutional investors,” JPMorgan’s strategists said, according to Bloomberg on Monday.
- “One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example,” they added.
- MassMutual’s move suggests insurance firms and pension funds are beginning to look at bitcoin as an investment/reserve asset alongside increased demand from wealthy investors and family offices.
- According to JPMorgan, bitcoin may find an additional demand of $600 billion if pensions insurance firms in the U.S., European Union, U.K. and Japan allocate 1% of assets to the top cryptocurrency.
- Regulatory hurdles, however, may complicate matters for such firms, limiting their participation in the bitcoin market, the strategists said.
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