Bitcoin is the third ‘most crowded trade’ among global fund managers, reveals a survey
A new survey aimed at global fund managers reveals that Bitcoin has climbed the rankings of the “most crowded operations,” surpassing traditional investments such as gold and bonds.
Bitcoin came in third overall for the category, listed by 15% of respondents as the most crowded investment, surpassed only by tech stocks (with 52%) and short positions on the dollar (with 18%):
The Global Fund Manager Survey was conducted by Bank of America Merrill Lynch between Dec. 4 and Dec. 10, and surveyed 217 fund managers collectively responsible for $534 billion in assets with a series of questions related to trends in investor behavior.
One of these asked respondents if they held long positions in Bitcoin, to which 15% responded in the affirmative, a threefold increase from last month’s 5% total:
“Good news, less than 5% of global fund managers have heard of Bitcoin. It’s still early days.”
In a year where money printing and subsidy distribution have raised concerns of massive inflation, the move away from cash and investment in uncorrelated assets like Bitcoin is clearly highlighted by the survey results.
Many investment managers are seriously considering Bitcoin purchases for the first time, encouraged by the example of the famous investments made by MicroStrategy, Square and Paul Tudor Jones. Following in their footsteps, insurance company MassMutual and investment manager Ruffer have also revealed huge BTC purchases in recent days.
Bank of America’s survey also found that fund managers are underexposed to cash for the first time since 2013, after buying an inordinate amount of stocks, commodities and other assets including Bitcoin in recent months.
This is not the first time Bitcoin has appeared in Bank of America’s monthly survey. In December 2017, Bitcoin took the top spot on the list, with 32% of participants indicating BTC as the “most crowded trade.” Bitcoin first appeared in the survey in the September 2017 edition, where it received 26% of the vote.
On August 18, 2020, Bitcoin surpassed Bank of America’s market cap for the first time. Currently, Bitcoin surpasses the bank by 45% in this parameter.