JPMorgan: Square’s $50M Bitcoin Holding is “a Vote of Confidence” for Crypto

American multinational investment bank and financial service holding company JPMorgan has affirmed that the future is green for the cryptocurrency industry. This is because publicly-traded companies like Square and MicroStrategy continue to buy Bitcoin while describing it as a primary treasury reserve asset.

Coindesk reported Tuesday that JPMorgan analysts noted that the sudden surge of institutional investors purchasing bitcoin is a blink of hope that most payment service companies have indeed spotted an enormous potential in the cryptocurrency. 

“Square’s recently announced $50 million investment in Bitcoin (BTC) is a strong vote of confidence for the future of bitcoin,” the bank’s researchers wrote. 

According to the report, Bitcoin’s demand in Q3 was far greater than its supply compared to Q2. MicroStrategy alone purchased 38,250 BTC (valued at $450 million at the time) between August and September

Well-established exchanges like CME and Bakkt have also helped increase interest in crypto-derivatives products like Bitcoin Options since institutional investors prefer to deal with these companies.

Coinfomania reported last month that Bakkt’s Bitcoin futures daily trading volume reached its highest level with a record of 15,955 contracts on Sept 15. 

Meanwhile, JPMorgan warns institutional payment services providers against risks of dropping off the train unless they borrow a leaf from smart payment companies like Square and purchase Bitcoin as an asset. 

With MicroStrategy leading the way, other institutional companies are joining the bandwagon. Coinfomania reported Tuesday that New York-based asset management company Stone Ridge called its $115 million in Bitcoin a “primary treasury reserve asset.”

See Also: JP Morgan Analysts Say Millennials Are Flooding Into Bitcoin Amid COVID-19 Pandemic

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