Life insurance and annuity companies are dedicating more and more of their asset base to Bitcoin (BTC). While the biggest cryptocurrency has provided the best returns in the last decade, the long-talked about institutional herd seems to be finally making its way into the BTC market.
BTC’s regulatory posture
During the 2018 bear market, multi-stakeholder Bitcoin development efforts seemed to focus on improving BTC’s regulatory posture. These efforts saw the emergence of institutional-grade custody platforms, among other necessary prerequisites for greater participation by regulated entities.
In the last year, publicly traded companies have started listing Bitcoin on their balance sheets, citing concerns about the weakening of the fiat currency in general. Significant cash inflows by major central banks to support stimulus packages enacted by governments to soften the economic shocks suffered by the coronavirus pandemic have caused market commentators to fear rising inflation.
Pension funds and insurance companies are willing to invest in Bitcoin