MassMutual revealed in a press release that it had completed a Bitcoin investment of $100 million. The insurance company also announced the purchase of an equity stake in an institutional crypto shop, NYDIG.
MassMutual Joins a List of Growing Bitcoin Institutional Investors
MassMutual, otherwise known as Mutual Life Insurance Co. is an insurance company based in Massachusetts. The American company founded in 1851, currently offers life insurance services to over five million clients.
On Thursday, December 10, 2020, the company announced that it has joined the growing number of institutional investors to purchase bitcoin holdings. Along with its BTC investment, MassMutual purchased of an equity stake in NYDIG worth $5 million, where it purchased its bitcoins.
NYDIG is one of the leading providers of institutional investment and technology solutions for Bitcoin. The institutional crypto shops is one of the fastest-growing institutional crypto shops with $2.3 billion currently under its management.
Big Move for Bitcoin
For many reasons, MassMutual’s purchase of Bitcoin is a big move for Bitcoin’s adoption. For a long time, MassMutual has been conservative about investing in cryptocurrencies. The adoption of Bitcoin by MassMutual is a sign of growing mainstream acceptance for the cryptocurrency and it could give Bitcoin a big boost going into 2021.
Tim Corbett, the Chief Investment Officer of MassMutual in speaking on the company’s investment said
We believe that having an equity stake in NYDIG as well as a Bitcoin position in our general investment account will help us deliver long-term value to our policy owners. We look forward to further exploring additional ways to work with NYDIG, consistent with our ongoing focus on innovation and diversification.
Strategists of titan financial provider, J.P Morgan, believe that MassMutual’s investment in Bitcoin could potentially pave the way for an increased demand for Bitcoin. The insurance company’s decision to go down the bright path of cryptos could be the example insurance companies and pension funds need to follow.
A Step in the Right Direction for Bitcoin
The goal of Bitcoin has always to become a store of value as well as a global payment system. The growing interest of institutional investors in Bitcoin can only mean the crypto has been moving in the right direction.
Less than a week ago, MicroStrategy announced it had completed a $650 million investment in Bitcoin. The business analytics firm joined Horrell Capital Management, Inc., Galaxy Digital (GLXY), Heritage Wealth Advisors, Verus Capital Partners, and Sterling Investment Advisors as companies with Bitcoin investments.