Now that publicly listed companies have lined up to purchase bitcoin in spades, insurance firms are also paying close attention to the number one cryptocurrency.

This week, the Massachusetts Mutual Life Insurance broker purchased $100 million in bitcoin for its general investment fund.

Image credit: Karolina Grabowska
Image credit: Karolina Grabowska

Buying bitcoin? Start here.

This is the latest mainstream company to take the plunge into cryptocurrency assets, which typically begins with bitcoin – the blue-chip cryptocurrency that has proven itself against all odds over the last decade.

The mutual insurer also acquired a $5 million minority equity stake in NYDIG, a subsidiary of Stone Ridge that provides cryptocurrency services to institutions, according to a statement. NYDIG, which already keeps more than $2.3 billion in crypto assets for clients, will provide custody services for MassMutual’s Bitcoins.

MassMutual, which has existed for well over a century (since 1851), is the latest firm to invest in the largest cryptocurrency. MicroStrategy has recently expanded its investments in bitcoin, and Square has poured some $50 odd million into the world’s most popular cryptocurrency as well amid talk of growing institutional adoption and demand.

The investment in bitcoin represents 0.04% of the general investment account of nearly $235 billion as of September 30th, MassMutual said. “We see this initial investment as a first step, and like any investment, may explore future opportunities,” spokeswoman Chelsea Haraty wrote in a email.

Read More: Circle CEO appeals against rumours of US Crypto Wallet Ban

This year, bitcoin has more than quadrupled since the lows in March, hitting an all-time high just shy of $20,000 earlier this month.

Now that institutions are increasingly aware of the dangers of runaway inflation, the digital gold narrative has propelled interest in bitcoin and continues to do so. Various high profile investors have called for the asset being a great inflationary hedge against continued central bank meddling, as previously critical institutions and investors such as JP Morgan and Ray Dalio take a more favourable outlook on bitcoin’s future.

Last week, the world’s largest asset management firm, Blackrock, which holds over $7.4 trillion dollars in assets under management also endorsed bitcoin.

As of December 11th 2020, publicly traded companies now hold 70,357 bitcoin, worth $1.2 billion on their balance sheets, and climbing.

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