'Long bitcoin' is no longer the most crowded trade for big-money investors - but more fund managers than last month say it's in a bubble, BofA survey finds

'Long bitcoin' is no longer the most crowded trade for big-money investors - but more fund managers than last month say it's in a bubble, BofA survey finds
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  • 21% of fund managers surveyed by BofA said "long bitcoin" is the most crowded trade, compared to 43% last month.
  • Now, a majority of managers say "long commodities" is the most crowded trade.
  • However, a growing number of managers surveyed by BofA said bitcoin is in a bubble.

"Long bitcoin" is no longer considered the most crowded trade by a group of big-money fund managers surveyed by Bank of America.

The cryptocurrency has been overtaken by commodities, with 26% of fund managers saying "long commodities" is the most crowded trade, putting "long bitcoin" in a tie for second place with "long tech stocks." (Both received 21% of the vote.) Last month, 43% of fund managers said "long bitcoin" is the most crowded.

Despite the world's largest cryptocurrency losing its first-place title, a growing number of managers told BofA bitcoin is in a bubble. 81% of managers said bitcoin is in a bubble, compared to about 75% of managers who said so in the May survey. These bubble concerns come even as bitcoin has lost roughly 37.5% of its value from its record high near $65,000 in April. Though at its current levels near $40,000, bitcoin is up 38% year-to-date and 329% in the last twelve months.

The cryptocurrency's rally in the last few days has been aided by comments made by billionaire investor Paul Tudor Jones. On Monday he told CNBC he likes bitcoin as a "portfolio diversifier and store of wealth."
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"I want to have 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities. I don't know what I want to do with the other 80% at this point in time. I want to wait and see what the Fed's gonna do," Jones said, referring to the policy decision the central bank is set to make during its two-day meeting beginning today.

Bank of America surveyed 224 panelists with $667 billion in assets under management from June 4-10.
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