Cryptocurrencies
JPMorgan Says MassMutual’s Bitcoin Foray Signals Widening Demand
- Bitcoin demand may be rising at insurance firms, pension funds
- Even small allocations from such buyers could be significant
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A recent investment in Bitcoin by Massachusetts Mutual Life Insurance Co. highlights the potential for additional institutional demand for the cryptocurrency in coming years, according to JPMorgan Chase & Co.
The $100 million purchase suggests adoption of Bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds, strategists including Nikolaos Panigirtzoglou said in a note Friday. The latter two are unlikely to ever make high allocations, but even a small shift toward the cryptocurrency could be significant, according to the strategists.