Analysts at JP Morgan Chase recently made an exciting forecast, telling that they envisage a huge demand for bitcoin up to the tune of $600 billion by institutional bodies. They explained that the increasing adoption of bitcoin by institutions and corporate bodies gives credence to their forecast.
Only recently, a big-name insurer Massachusetts Mutual Life Insurance Co invested about $100 million in the cryptocurrency. They suggest that the acquisition, signals a vast emerging market for bitcoin and other cryptocurrencies, stating that bitcoin is becoming accepted in the corporate world, beyond small-family offices. Insurance firms, pension funds and corporate institutions are adopting cryptocurrency investments
Analysts at the financial giant further expressed their optimism by explaining that other corporate bodies, insurance firms and pension funds could follow Massmutual's example in the coming years, heralding a new dimension in the cryptocurrency market. Massmutual's bitcoin acquisition represent a major breakthrough in the acceptance of bitcoin by corporate investors, they said.
Although they admit that conventional investors, such as insurance firms and pension funds, face regulatory obstacles relating to risk levels and imbalances of liability that would restrict how much they would invest in bitcoin.
Thus implying that they do not envisage big insurance companies and pension fund to invest heavily into the cryptocurrency; however, they assert that small investment even as little as 1% of their funds would have a substantial impact in the Bitcoin market.
With the rising value of bitcoin and its sustainability feature even in a tumultuous year, the analysts declared that it would attract even more interest from other institutional bodies.
They suggest that "if insurance firms and pension funds in the United States, europe, Japan and the United Kingdom apportion 1% of their investment funds to bitcoin, that would yield a $600 billion increased demand for bitcoin."
Already, there is a fast-growing interest in bitcoin from corporate bodies, especially in the financial sector. The CEO of Standard Chartered Bank, recently declared that a global adoption of cryptocurrency cannot be stopped. Reiterating this stand, CEO of Blackrock believes that bitcoin can expand into the global market.
