It’s no surprise that Bitcoin is one of the busiest trades out there
The COVID-19 pandemic has affected almost every area of the financial landscape. The US dollar in particular has taken quite a hit and it appears that the money managers have lost confidence in it. Many of them have turned their backs on the dollar and are considering other investment options that are more resistant to inflation.
Bitcoin is one of the options that has received a lot of interest. A recent survey of global fund managers shows that Bitcoin has climbed the crowded trading list. The digital asset has outperformed traditional bonds with investment options. Bitcoin was the third largest trade at 15%.
Tech stocks and short dollar positions were ranked first and second with approvals from 52% and 18% of respondents, respectively.
List of the busiest trades according to the BofA GFM survey. Source: Twitter
The results are part of the Bank of America (BofA) Global Fund Manager (GFM) survey conducted between December 4th and 10th this month. A total of 217 fund managers worldwide were involved. Based on the survey results, it appears that many investors are moving from other assets to cryptocurrencies. This could be partly due to the poor performance of other assets and the recent Bitcoin price rally.
Notable figures in the financial world like Michael Saylor (MicroStrategy), Jack Dorsey (Square) and Paul Tudor (Tudor Investment Corporation) have embarked on a path that many investors are happy to follow. MassMutual and Ruffer Investment Company also followed.
According to Bloomberg, the survey also found fund managers were underweight cash for the first time since May 2013.
Bitcoin has been ranked among the busiest trades several times since September 2017. At that time, Bitcoin received a total of 26% of the respondents’ votes. Bitcoin’s market capitalization surpassed the bank’s valuation for the first time on August 18 this year and is now 45% ahead.