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MassMutual joins the party and invests $100 million into Bitcoin!
The first article here is from @jrcornel talking about the recent $100m Bitcoin purchase by the Mass Mutual Financial Group.
This is an insurance company that is 169 years old. It's one of the largest in the world and represents a nice segment that we could call "old" or "boring" money.
As I continue to reiterate in these Daily LEOs, we're seeing a narrative of more and more institutions FOMOing into Bitcoin. It's starting to become irresponsible for institutions and major investors to not have any sort of BTC exposure in their portfolios.
Bitcoin Starting To Pull In More "Big Boys"
This article continues the discussion about Mass Mutual jumping into Bitcoin. $100m represents less than a tenth of 1% (~0.04%) of Mass Mutual's fund ($225 billion).
If Mass Mutual were to increase their position to just 1% of this fund, then that would be an additional $2.15 billion that they'd purchase. While no plans for this were announced, it's not hard to imagine that they would leg in with a smaller purchase and slowly add to the position over time.
If nothing else, this serves simply as yet another stamp of approval from this "old" or "boring" institutional money that is starting to get into the crypto space.
This article also mentions Grayscale and the reported levels of ETH buying that is happening. Institutions aren't blind to innovation and the Ethereum blockchain services the most innovative projects in all of crypto. With a market cap of $62 billion USD, ETH has some massive upward volatility ahead of itself if institutional money continues to flow into the top 2 assets in crypto.
The Wealthy Are Jumping Into Bitcoin as Stigma Around Crypto Fades
Larry FinkPhotographer: Simon Dawson/Bloomberg
This next one comes from Bloomberg. What I like about this article is how they synthesized the major players that have jumped into Bitcoin and the crypto space over the past several months. They talk about everyone from PTJ (Paul Tudor Jones) to institutions like PayPal and Visa.
Towards the end of this article, they also discuss BTC vs. Gold and how Bitcoin has absolutely crushed gold in terms of performance over the past several months.
Gold has remained flat while fiat is being printed to the moon. The narrative is that there is a pending exodus from Gold and a flight into the superior hard asset of the future: Bitcoin.
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Is so great to see all these big companies taking the plunge! Surely, many, many more will follow!
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A 100$ million in BTC, 2020 has a lot of institutions taking the decisions to buy into Bitcoin. It hasn't happened like that in any other year. As for BTC Vs gold, it safe to say this year in general was a year Crypto got more traction than gold. Though gold still remains an excellent store of value.
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The BTC versus gold is going to be interesting. I think demographics help it in the short term. The millennials are all into BTC as opposed to gold.
From what I understand, as India gets wealthier, they will eat up the gold since they love it there.
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Wouldn't this even make gold more valuable? wow interesting. I believe BTC can replace gold, I love the competition and it's evident BTC is doing way better at least.
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Certainly that would drive the value of gold up. Of course, it might take decades for India to get there.
Gold is also going to benefit from a commodity run that is likely to start around 2023. That will carry all commodities, including gold, higher.
Might be a major drop in the meantime as people realize the crash that is going to happen is not due to inflation but deflation. This will crush gold.
I expect it to test the 2015 low.
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Well might crush gold but then the 2015 lows was epic, for gold to actually test it again, it would be disastrous to a lot of people using it to store value..
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Yes gold is not set in stone. It does tend to fluctuate greatly over time.
No different than Bitcoin. Gold, contrary to many beliefs, is volatile over the decades too.
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Gone are the days Gold was more prioritized than the magnitude of fait currencies as bitcoin as taken over the lead of priority. Great news @khaleelkazi.
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As mentioned in another comment, I think it depends on where one focuses.
Watch India to become a big consumer of gold. This might pick up the slack for the Millennials who are turning away from it.
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That's very true, though even most of these indians are Investors of btc. You made a very good point because indians core asset is on gold. Thanks for the support and great comment @taskmaster4450le
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ok okok ok dot com good value. As for BTC Vs gold, it safe to say this year in general was a year Crypto got more traction than gold. Though gold still remains an excellent store of value. thanks
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For the institutions, I am not sure it is FOMO. Most of them are rather conservative so they often wait until markets "mature". Bitcoin is still very immature for their liking.
That said, the Mass Mutual move was a big step because it is an insurance company, not exactly known for their risks.
The likes of Fidelity are still on the sidelines with their investment dollars. When those types of companies get involved, then we will see the fun begin.
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You've got the right idea. These are some VERY smart and wealthy players in the game.
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the migration of investments by institutional investors to Bitcoin has now begun.
The process is slow at the beginning but irreversible and will acquire more and more speed and intensity. Buckle up, 2021 is going to be really exciting
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This investment is huge news I think.
It's one thing random tech companies buying into Bitcoin. That's already interesting, although kind of an expected step, given the interest of such companies in the digital space.
But institutional funds and insurers? That's a whole other ballgame. Exciting times.
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Thanks for the news! I really like to see that the bitcoin is not the only coin bought by the institutions :D
A great year where cryptocurrency took the first lines in the finance news and we see many big movers into the space. And these ones are here to stay, not just take quick profits. This should be fundamental not to repeat the history and have a threshold from where to continue to grow.
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It's really amazing to see how wide Bitcoin's paths are becoming. The growth has been pretty steady.
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Truth brother! Where does all of this institutional FOMO end up!
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bitcoin number one
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I know people are getting hyped for BTC because of all this news. For me it's an official stamp that Bitcoin = Boring now. Maybe I'm too much of an adventurer. But just think about it guys! BTC was the shenned and put away. Nobody paid attention. Now it's a huuuuge deal for the bankers.
Where BTC used to be - we've got our alts like Hive, LEO, Dash, BAT, RUNE and many many more. They are the new Bitcoin :)
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The more institutional investment moves to Bitcoin, it will get more exposure. This is definitely leading towards crypto going mainstream eventually. No one wants to miss the golden opportunity. And this is the opportunity that can change a lot of things, they will miss it if they close their eyes.
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Haha, I do like that last paragraph from the third article where institutions are worried about being called Neanderthal. It's definitely a different kind of FOMO to what the average person would have as a FOMO motivation (or Fomotivation if you want to marry the two words)! $100 million not even 0.1% of your value, they can probably afford to chip it up to 1% and it won't even make a dent in their overall portfolio but that's a staggering amount, $2.25 billion more potentially could be coming in on top of other institutions getting their toes wet?
OK, I'll stop now before I increase my heart rate more than the recommended amount haha!
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I watched a couple YouTube videos by Raoul Pal on Bitcoin and Ethereum, he is very convincing that Bitcoin is a go all in investment. He states he liquidated all his other investments and put all his liquid into 80% BTC and 20% ETH.
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