MassMutual invests $100M in Bitcoin via NYDIG

MassMutual has become the latest firm to invest $100M in Bitcoin as investment strategy via the New York Digital Investment Group (NYDIG).

By Komal Joshi · Dec 12, 2020 . 5min read

2020 is rising to be the commencement of major institutional interest in Bitcoin. MassMutual, an American financial services company with over 5 million clients, invests about $100M in Bitcoin. According to the official press release, MassMutual has also acquired a small stake in the NYDIG (New York Digital Investment Group). MassMutual invests $100M bitcoin for its general investment account in a transaction backed by NYDIG.

The MassMutual joined the crypto market to expand its investment portfolio. NYDIG consented to offer a minority stake in the company to MassMutual in a deal worth $5 million. The NYDIG has expanded swiftly in the last few years and presently has above $2.3 billion of digital asset balances under custody. Ross Stevens, the founder and executive chairman of NYDIG, said MassMutual was not the first insurance company to purchase bitcoin through his company. Stevens mentioned the devaluation of the dollar and near-zero interest rates as incentives pushing companies towards Bitcoin.

MassMutual’s overall holdings comprise 0.4% Bitcoin

MassMutual says the current purchase is a deliberate and significant exposure to an evolving market of digital assets. NYDIG intends to benefit from the recently formed collaboration with MassMutual to draw more institutional investors. The firm’s general investment account includes about $235 billion of other assets. Thus, indicating that Bitcoin makes up approximately 0.4% of its overall holdings.

MassMutual, which came into existence in 1851, is the recent company to fund the largest cryptocurrency. Another major financial institution investing in Bitcoin publicly is definitely delightful news to various BTC investors. Moreover, in 2020, several companies, banks, and investment funds have contemplated the dominant digital asset and decided to designate capital. MicroStrategy Inc. has advanced its investments into bitcoin. Moreover, Square Inc. has drained money into the world’s most popular cryptocurrency. The move comes when discussions about developing institutional adoption and demand are increasing.

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