JPMorgan: $ 600 Billion Could be Invested in Bitcoin By Institutions
The US bank JPMorgan continues to praise Bitcoin (BTC). JPMorgan strategists estimate that it is possible for institutions to $ 600 billion in Bitcoin in the future.
Institutions adopt Bitcoin (BTC)
Strategists at US bank JPMorgan have suggested that pension funds and insurance companies could invest $ 600 billion in Bitcoin soon. This claim follows the purchase by insurance company MassMutal of $ 100 million in bitcoins.
As Bloomberg reports, JPMorgan analysts are categorical: demand from institutions for Bitcoin is just beginning:
“This $ 100 million purchase [by MassMutual] suggests that Bitcoin adoption is spreading from wealth management offices and wealthy investors to insurance companies and pension funds,” strategists point out.
Even if they believe that these entities are unlikely to ever make any significant investments, a small portion of their funds would be enough for this to be meaningful for Bitcoin and the cryptocurrency industry:
“If pension funds and insurance companies in the United States, Eurozone, United Kingdom and Japan allocate 1% of their assets to Bitcoin, that would result in additional demand of $ 600 billion,” the strategists said.
Institutional appetite for Bitcoin has been steadily increasing since the start of the Covid-19 pandemic. Having proven its resilience in the face of the crisis, Bitcoin quickly became a preferred investment option. For JPMorgan, the finding is clear, Bitcoin is likely – on many points – to gain the upper hand over gold.
Which trend is becoming the norm?
The year 2020 will have been particularly spectacular for Bitcoin. Its meteoric rise following its crash in mid-March has convinced many institutional investors. Driven by ever stronger fundamentals, Bitcoin even surpassed its highest point set in December 2017.
A trend quickly formed around this general euphoria. More and more institutions have looked at Bitcoin, admitting that it represents an excellent investment, even against gold. Is this trend about to become a norm?
JPMorgan has been particularly bullish on Bitcoin in recent weeks. The American bank is making more positive statements about Bitcoin, even claiming that it threatens the price of gold. From MicroStrategy, Square and Grayscale to Goldman Sachs and JPMorgan, Bitcoin has now taken pride of place in investment portfolios.
In the near future, it is therefore very likely that a new company will join the “Bitcoin Club”, by investing in turn in the first of the cryptocurrencies. A list of investors in Bitcoin which can only grow over time, to the delight of holders.
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