JPM comments on the crypto, comes via a Bloomberg report, citing a recent $100m investment in Bitcoin by Massachusetts Mutual Life Insurance Co.
JPM say this highlights the potential for additional institutional demand in coming years
- suggests adoption of Bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds
Says that even a small allocations toward the cryptocurrency could be significant
- “MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors”
More from the note:
- If pension funds, insurance co.s across developed markets (US, eurozone, Japan) allocate 1% of assets to Bitcoin, that would result in additional Bitcoin demand of $600 billion (compared to the current market cap around $356 billion – Bloomberg citing CoinMarketCap.)
JPM add a caveat:
- these traditional investors face regulatory hurdles relating to risk levels and liability mismatches which would limit their investment into BTC.