- Bitcoin adoption by MassMutual and its collaboration with NYDIG
- The veteran investment company’s crypto journey that started with an investment, continues with expansion of crypto exposure for clients.
- Other Institutional Investors that took steps towards crypto adoption
YEREVAN (CoinChapter.com) – Bitcoin’s exposure grows rapidly. According to the announcement on August 11, the Massachusetts Mutual Life Insurance Company’s (MassMutual) broker-dealer, the MML Investment Services (MMLIS), will collaborate with NYDIG, a technology provider for institutional investors, and create a Bitcoin fund.
The said fund will be accessible to select clients, who will get a chance to invest in the alpha crypto through MassMutual safely.
Daken Vanderburg, the head of Investments at MMLIS, asserted that the company sees a growing demand for Bitcoin exposure from its clients and financial professionals. As a result, the Investment Services provider is seeking to integrate cryptocurrency into different areas of business.
This offering with NYDIG is yet another step to continue to expand our product shelf with the goal of ensuring our financial professionals and clients have the tools they need to continue to build broadly diversified portfolios.added the executive.
The crypto technology provider was also excited about the new fund. Robert Gutmann, the founder, and CEO of NYDIG, singled out MassMutual as one of the early believers in the benefits of blockchain technology.
We are excited to partner with the MMLIS team to provide its financial professionals and investors with access to bitcoin exposurecommented Mr. Gutmann.
MassMutual’s Bitcoin journey
The 170-year-old life investment company is not new to the flagship cryptocurrency. MassMutual’s vector towards crypto technology initiated when it purchased a $5 million minority equity stake in NYDIG back in 2020, followed by a 100 million worth of Bitcoin investment.
Bitcoin represented only 0.04% of the general investment account of nearly $235 billion as of Sept. 30
We see this initial investment as a first step, and like any investment, may explore future opportunitiescommented Chelsea Haraty, spokeswoman for MassMutual.
Bitcoin gained more than 300 percent since September 2020, bringing MassMutual tremendous gains. Now that the veteran investment company initiated a Bitcoin fund, it can extend the courtesy to a fraction of its client base.
Bitcoin’s growing adoption by institutional investors
The crypto market became an excellent hedge against inflation in 2021. As it promises vast returns, many individual investors strive to get a piece of the cake. However, colossal institutional investors are not an exception.
While Bank of America and Germany’s Commerzbank are not keen on the idea, other institutions dip their toes in blockchain technology.
Banks like Morgan Stanley, Citi Bank, and JP Morgan chose to offer their well-hilled clients crypto exposure with certain assurances against volatility. JP Morgan took it a step further and announced broader crypto exposure on July 26, 2021.
The banking giant now offers crypto exposure to its retail customers through 5 funds. Grayscale Investments offers 4 of them, while Osprey Funds delivers the fifth. JP Morgan’s inclusion is particularly noteworthy, as Jamie Dimon, the chief executive, has been less than kind about Bitcoin. For example, he used to call it a fraud back in 2017.
MassMutual took its Bitcoin commitment a step further and exposed its selected clients to crypto investments. The institutional adoption could bring Bitcoin stability and prime it as a hedge against the growing inflation in the future.