This illustration shows a representation of the Bitcoin virtual currency.
Dat Ruvic | Reuters
With rising prices and a major public offering reaching the market, most professional investors consider bitcoin to be just a balloon, according to the latest Bank of America fund manager survey.
About 74% of those who responded to a carefully observed market indicator said they see the leading cryptocurrency as a bubble. Only 16% said no to the question, indicating the highly speculative reason bitcoin sees.
Fund managers ranked Bitcoin second on the list of busiest transactions, tracking technology stocks. The cryptocurrency ranked well ahead of the trend toward environmental, social and corporate governance or ESG, cyclical stocks and against the US Treasury.
Just over three out of 10 respondents mentioned technology as the busiest transaction, while 27% said bitcoin.
However, about 10% said they believe Bitcoin will outperform in 2021.
The results come from a survey of 200 panelists with $ 533 billion in assets under management.
The discoveries come just as traders are bidding on the price of Bitcoin, and the market is waiting for a major debut for a public list.
The price of Bitcoin has risen almost nine times in the last year, both against the background of a speculative frenzy and a more widespread acceptance. Tesla founder Elon Musk earlier this year said the electric vehicle maker will accept bitcoin for payment, and several Wall Street banks are making arrangements for customers interested in cryptocurrencies.
At the same time, Coinbase, the largest encryption exchange, is published on Wednesday with a direct offer on the Nasdaq chart.
The company has 56 million verified users and reported revenue of $ 1.8 billion in the first quarter. The market expects the valuation to reach up to $ 100 billion.
The Bank of America survey showed that investor concerns are changing.
While Covid-19 had dominated as the biggest market fear, it turned to concerns about a bond market crisis if the Federal Reserve reduced its asset purchases earlier, followed by inflation.
Some investors see bitcoin as a hedge against inflation, essentially as a place to store money as prices rise.
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