JP Morgan: Mass Mutual’s entry into Bitcoin is a clear indication of widening demand

The significance of Mass Mutual's investment into Bitcoin could mean that this could open the floodway for other financial players in the crypto space.

By · Dec 14, 2020 . 5min read

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JP Morgan Chase & Co has expressed its opinion on Mass Mutual Insurance firm recent purchase of $100 million worth bitcoin. The 169 years old insurance firm is the latest institutional sensation to dabble into Bitcoin in what appears to be a streak of institutional foray into cryptocurrencies lately in 2020.

According to a recent Bloomberg publication, the institutional banker opined that

The $100 million purchase suggests the adoption of Bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds

JP Morgan foresees more insurance players pitching a tent with Bitcoin due to Mass Mutual’s move.

The significance of Mass Mutual’s investment into Bitcoin is interesting. It could mean that this could open the floodway for other financial players, most especially the Insurance sector, to delve deep into the cryptocurrency sphere.

“One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”

This is not the first time JP Morgan will be expressing positive sentiments towards Bitcoin this year. Just a few days before Mass Mutual’s investment into Bitcoin, JP Morgan had made a strong stance. The investment banker turned on Gold. JP Morgan said it would suffer because of the newest sensation and what is commonly called “digital gold.”

The spate of institutional entrants into Bitcoin for 2020 has been nothing short of alarming. October was the golden month for Bitcoin, much after MicroStrategy has flexed its weight by investing $425 million earlier. Square and PayPal made the rounds into Bitcoin, with the latter opening its platform for Bitcoin purchase for up to 22 million merchants.

Billionaire Paul Tudor Jones was credited with the statement still back then in August that

Investing in Bitcoin is like being an early investor in Tech

In a recent Reddit AMA session, Ray Dalio said he could be missing something about Bitcoin. This represents a paradigm shift from Dalio’s initial hard stance on the cryptocurrency. Larry Fink, CEO of Blackrock, also changed his opinion on Bitcoin. He outlined it may evolve into a global asset.

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