The acquisition of MassMutual Bitcoin (BTC) for $ 100 million shows that demand for cryptocurrency will continue to grow, according to strategists at large investment bank JPMorgan.

In a December 11 investor note, JPMorgan strategists, including Nikolaos Banegertzoglou, proposed expanding Bitcoin adoption from family offices and wealthy investors to larger investors such as insurance companies and pension funds.

As reported by Bloomberg, experts said that insurance companies and pension funds are unlikely to invest large sums in bitcoin, but even a small shift towards cryptocurrency could be significant.

If pension funds and insurance companies in the United States, the Eurozone, the United Kingdom and Japan allocate 1% of their assets to bitcoin, then demand for bitcoin will grow by another $ 600 billion, the strategists calculate. According to CoinMarketCap, that’s nearly twice the market cap of Bitcoin, which was $ 356 billion at the time of publication.

Strategists at JPMorgan write: “The acquisition of Bitcoin MassMutual marks another milestone in institutional investor adoption of Bitcoin. […] One can see the potential demand that could arise in the coming years, as other insurance companies and pension funds follow in MassMutual’s footsteps.”

MassMutual Insurance, Massachusetts, announced on December 11 that it would buy $ 100 million in Bitcoin for its public investment account. MassMutual told Cointelegraph that the investment is part of a broader strategy aimed at achieving “a measured but meaningful impact on the growing economic dimension of our increasingly digital world.”

MassMutual’s attack on Bitcoin is happening among the major companies MicroStrategy, which plans to offer $ 400 million in securities to invest in BTC. MicroStrategy adopted Bitcoin as its most important asset after purchasing Bitcoin for $ 425 million in August and September.

Source: CoinTelegraph