A representation of the virtual currency Bitcoin is seen in front of a stock chart in this illustration.
Dado Ruvic | Reuters
With prices rising and a huge public offering hitting the market, most professional investors believe bitcoin is just a bubble, according to the latest Bank of America Fund Manager Survey.
About 74% of those who responded to the accurate market meter said they viewed the leading cryptocurrency as a bubble. Only 16% said no to the question, indicating the highly speculative ground on which they see bitcoin.
Fund managers also place bitcoin second on the list of most trades, with technology stocks. The cryptocurrency was far above the trend toward environmental, social, and corporate governance, or ESG, cyclical equities, and toward U.S. treasury.
Just over three in ten respondents rated technology as the busiest trade, while 27% said bitcoin.
Still, about 10% said they think bitcoin will perform better in 2021.
The results come from a survey of 200 panel members with $ 533 billion in assets under management.
The findings come just as traders are offering the price of bitcoin, and the market is awaiting a major debut for a public listing.
Bitcoin’s price has risen almost ninefold in recent years amid speculative madness and wider acceptance. Elon Musk, founder of Tesla, said earlier this year that the electric carmaker would accept bitcoin for payment, and several Wall Street banks cater to customers interested in cryptocurrencies.
At the same time, Coinbase, the largest crypto exchange, announced a direct offer on the Nasdaq board on Wednesday.
The firm has 56 million verified users and reported $ 1.8 billion in revenue for the first quarter. The market expects the valuation to reach $ 100 billion.
The Bank of America survey showed that investors’ concerns are changing.
While Covid-19 dominated as the biggest market fear, it switched to concerns about a tantrum of the bond market as the Federal Reserve reduced its asset purchases early, followed by inflation.
Some investors view bitcoin as an inflation hedge, essentially as a place to store money as prices rise.
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