The belief of global asset managers has become mature over Bitcoin as the US dollar is losing its dominance. They are seeking those instruments which create a strong hedge against inflation.
Global Fund Manager Survey
The Bank of America carried out a detailed survey entitled “Global Fund Manager Survey” which asked questions from managers all around the world. In the list of “most crowded trade,” the flagship cryptocurrency has made its name at the third position. Even prominent instruments such as bonds and gold are behind the Bitcoin in raking. Tech stocks have become successful in getting the first rank after gaining 52% of responses while short dollar (18%) is standing at number two position in the ranking.
The Bank of America’s survey was started on December 4 and was completed on December 10 after getting data from 217 fund managers. These asset fund managers have possession of a total of $534 billion.
In December’s survey, asset managers have more belief as compared to the month of November that the top digital asset will outperform in 2021.
In all recent surveys, Bitcoin has made its position clear because investors are now having a clear view of it rather than an uncertain understanding. The stimulus package and Fed policies have made investors more uncertain about the US dollar which benefits the world’s leading asset the most and as a result Bitcoin has captured the attention of investors. The era of cash money is moving away and the gap is overcoming by other stores of values, including Bitcoin.
The survey also revealed that a lot of asset managers are new to check the potential of cryptocurrency and want to invest a lot of capital into the flagship digital currency. The trend of digital assets rises after giant investment companies have dedicated some capital for Bitcoin. For example, giant US insurance company MassMutual made a purchase of BTC worth $100 million.
Bitcoin has not mentioned itself for the first time in the survey list of Bank of America. In the monthly survey of December of 2017, asset managers put Bitcoin at the top of the list as the “most crowded trade.”
The market cap of the top digital asset is greater than the Bank of America by 45%. Bitcoin surpassed the market capitalization of Bank of America for the first time in August 2020.