According to the official note, JPMorgan outlined that if family offices, insurance companies and pension funds decide to allocate a small percentage to cryptocurrencies, it would result in massive demand. The research note drafted by strategists including Nikolaos Panigirtzoglou mentioned that insurers and pension funds are facing regulatory hurdles to enter the crypto market.
“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 note states.
The bank expects financial services companies from the US, EU, Japan and the UK to allocate at least 1% of assets in Bitcoin, with an expected Bitcoin demand of $0.6 trillion.
Bitcoin and Gold
In 2017, the CEO of JPMorgan, Jamie Dimon called Bitcoin a fraud and warned to fire JPMorgan traders involved in Bitcoin trading. “I would fire BTC traders in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous.”
It seems that the bank has changed its tone completely on cryptocurrencies.