The Bank said that even 1 percent of major financial firms’ asset allocation would result in BTC demand of $0.6 trillion.
In a research report, JPMorgan Chase, one of the largest investment banks in the world, mentioned that the recent acceptance of Bitcoin by the mutual life insurance firm, MassMutual, suggests the opportunity for increased institutional demand. The bank expected around $600 billion in demand for Bitcoin in the future.
JPMorgan outlined, according to the official note, that if family offices, insurance providers, and mutual funds plan to devote a tiny percentage to cryptocurrencies, huge demand will arise. Strategists such as Nikolaos Panigirtzoglou wrote a study note noting that insurers and pension funds pose regulatory challenges to joining the crypto market.
The statement says that “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.”
Furthermore, investors like Dalio believe that, as buyers will incorporate the world’s leading cryptocurrency into their investment pool along with conventional goods such as stocks and commodities, bitcoin seems like a strong tool for fund diversification and should be embraced.
Dalio in a Reddit post is one of the many investors who have recently positively embraced digital assets.
The bank wants US, EU, Japan, and UK financial services firms to allocate at least 1 percent of Bitcoin reserves, with a Bitcoin demand of $0.6 trillion expected.
Gold and Bitcoin
Panigirtzoglou said that the long-term picture looks good amid a distorted near-term outlook for bitcoin. He added that large outflows from Gold ETFs are projected to take advantage of BTC. He added that “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.”
Jamie Dimon, JPMorgan’s CEO, called Bitcoin a scam in 2017 and cautioned against terminating JPMorgan traders participating in Bitcoin trading. He said that “I would fire BTC traders in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous,” which is evidence of how far along the banks’ perception of cryptocurrency has come. It seems that the bank has changed its tenor on cryptocurrencies.
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