Bank of America released a new survey that found that the majority of professional investors are not very optimistic about the world’s largest cryptocurrency.
Nearly 75% of respondents in the April BofA Fund Manager Survey said that they see Bitcoin as a “bubble,” CNBC reported.
The survey polled 200 respondents with $533 billion in assets under management. Just 16% of respondents said Bitcoin is not a bubble, while 10% were uncertain.
More than 30% of survey respondents cited tech as the most crowded trade i.e. an asset with a history of rapid price appreciation and a high number of like-minded, speculative investors. 27% of respondents said that Bitcoin is the most crowded trade right now, while 10% predicted that BTC will outperform tech in 2021.
BofA previously released a survey showing that “long Bitcoin” flipped “long tech” as the most crowded trade in January 2021.
The latest BofA survey shows significant skepticism regarding Bitcoin after the bank’s analysts recently slammed the cryptocurrency as “exceptionally volatile”, “impractical” and an environmentally disastrous asset.
Other major American banks are more bullish on digital assets. After Goldman Sachs revealed that 40% of its clients already had exposure to crypto as of March 2021, the investment bank announced it was preparing a Bitcoin product. Also in March, JPMorgan announced its Cryptocurrency Exposure Basket, a debt instrument portfolio including stocks of companies that hold Bitcoin as a treasury asset.