JPMorgan Predicts $600 Billion Worth of Institutional Inflow In Bitcoin (BTC)
Banking giant JPMorgan is making big predictions for Bitcoin ahead. Looking at the rising institutional demand, the banking giant predicts that Bitcoin can register net inflows of around $600 billion together from family office, pensions funds, and insurance giants.
JPMorgan’s latest prediction comes after the 169-year-old insurance giant MassMutual announced $100 million investment in Bitcoin last week. The insurance giant made this investment with the help of digital asset manager NYDIG.
In a note to clients last Friday, JPMorgan chief strategist Nikolaos Panigirtzoglou wrote that the recent entry into Bitcoin (BTC) by MassMutual can create an additional demand from institutions.
The strategists wrote: “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.”
The JPMorgan strategists noted that even if the big pension funds and insurance companies across regions like Europe, the U.S, U.K, and Japan invest 1% of their assets into Bitcoin, it could create an additional inflow of $600 billion in the world’s largest cryptocurrency.
In recent times, JPMorgan has been betting big on Bitcoin. Last week, the banking giant noted that Bitcoin is slowly eating into the market share of Gold. Citing the period from October 2020 onwards, the banking giant noted that there’s been a consistent outflow of money from Gold ETFs. On the other hand, there’s been a consistent inflow of money coming into Bitcoin.
“The bitcoin flow outlook for the medium to longer-term looks positive as we anticipate that the contrasting institutional flow picture over the previous two months with inflows into the Grayscale Bitcoin Trust and outflows from Gold ETFs would become a structural trend. The adoption of bitcoin by institutional investors has only begun,” Panigirtzoglou added.
Bitcoin has been on the radar of institutional investors and more so because of the recent COVID-19 economic crisis. Many analysts see Bitcoin (BTC) as a potential hedge against the rising inflation as central banks continue to pump more money in the global economy.
Institutional inflows in Bitcoin continue to rise week-after-week over the last few months. So far in 2020, several-hundred-million-dollars of institutional money has been poured into Bitcoin.
Over the weekend, business intelligence giant MicroStrategy announced its $650 million of convertible notes offering and added that it intends to put all this money into Bitcoin. With this, MicroStrategy will take its total Bitcoin investments to above $1 billion.