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- JP Morgan Chase has recently estimated that institutional investment is going to keep on going over the next year.
- A spokesperson for the company said that interest in institutional investment is at an all-time high and as a result, $600 billion could be seen in bitcoin inflow.
JP Morgan Chase has recently estimated that institutional investment is going to keep on growing over the next year. A spokesperson for the company said that interest in institutional investment is at an all-time high and as a result, $600 billion could be seen in bitcoin inflow.
A report from Bloomberg highlighted that an analyst at the company, Nikolaos Panigirtzoglou believes that after the massive bitcoin purchase from MassMutual, a bigger audience is going to come into bitcoin and the overall market.
Tied with the recent increase in bitcoin purchases from the institution, the analyst says that there is a high demand for the leading crypto coin and the acquisition of bitcoin from different social and commercial organisations. This can include pension funds, insurance companies and so on.
Over the course of this year, we have seen a massive increase in institutional investment. It is likely that we will see this investment continue to grow as more institutions jump on the bandwagon.
The analyst highlighted though that the purchasing power will change depending on the group (pension funds, insurance companies etc.). A small percentage of the acquisition could still have a big impact on the bitcoin value and send it skyrocketing.
He went on to say that the bitcoin purchases from MassMutual show another achievement when it comes to bitcoin adoption by institutional investors. Furthermore, the analyst has said, “one can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
Regulation policies are having a big impact on reducing the investment from companies like these though. It was noted by the analyst that due to the high risk levels and liability discrepancies, pension portfolios are a big victim to regulatory hurdles for example.
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