The reason to do this, beyond the inherently neat Inception factor, is that JVMs are a PITA to work on because they're normally written in languages like C++ or Rust which optimize for performance and manual control over productivity. That makes it hard to experiment with new JVM features or changed semantics. If you could write a JVM in a high level very productive language like Java (or Kotlin or Scala) then the productivity of people writing and experimenting with JVMs would go up. It would also make it feasible for "ordinary" Java devs to actually fork the JVM and modify it to better suit their app, at least in some cases.
There's also something conceptually cleaner about having a language and its runtime implemented purely in itself. As long as you don't mind the circularity, that is.
Espresso for example has hot-swap features HotSpot doesn't have, so you can modify your program as it's running in more flexible ways than what regular Java allows.