Family offices, pension funds and other large investors could channel up to $600 billion into Bitcoin, following the MassMutual example. This view is held by analysts at JPMorgan Chase & Co., Bloomberg reports.
In December MassMutual, which manages $235 billion of assets, allocated $100 million to Bitcoin. According to analysts, this signals the emergence of a new trend among institutions.
“There appears to be potential demand that could emerge over the coming years,” JPMorgan said.
Analysts reckon that $600 billion of Bitcoin investments would amount to just 1% of the capital held by the largest insurers and pension funds in the US, Europe and Japan in digital gold. However, regulatory frictions constrain their ambitions.
Earlier, ShapeShift CEO Erik Voorhees stated that institutional investors could become a “natural hedge” for Bitcoin against excessive government scrutiny.
In December, MicroStrategy Inc., a provider of analytic software, raised $650 million in debt financing for further investment in the leading cryptocurrency.
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