Prominent investment bank, JPMorgan Chase, has come out to say that Bitcoin could receive an additional $600 billion inflow in the future. Citing a recent $100 million investment in Bitcoin from the insurance company MassMutual, JPMorgan believes that the digital asset has reached a significant turning point.
As reported by Bloomberg, analysts at the bank believe that bitcoin has captured the attention of institutional investors and that the demand from institutions will continue to rise. They opined that MassMutual’s purchase is an endorsement of Bitcoin, and it suggests that “adoption of bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds.”
Nikolaos Panigirtzoglou, one of the bank’s leading analysts can be quoted saying:
MassMutual’s bitcoin purchases represent another milestone in the bitcoin adoption by institutional investors. One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.
Whilst it may not be realistic for insurance firms and pension funds to allocate a large percentage of their portfolio to a highly volatile asset like Bitcoin, the report admits that even small purchases from a number of these firms could substantially push the market forward.
Meanwhile, Bloomberg analysts predict a market cap of $1 trillion by next year from a current market cap of around $350 billion.