Two roundtable discussions for chief investment officers of hedge funds were recently hosted by investment bank Goldman Sachs. According to the bank, bitcoin is their least preferred investment. The most crowded trade, according to the latest Bank of America Fund Manager Survey, was “long bitcoin.”
After completing a study to find out what investments chief investment officers (CIOs) prefer in the present market, Goldman Sachs released a note on Saturday. Timothy Moe, a strategist at Goldman Sachs, wrote:
We held two CIO roundtable sessions earlier this week, which were attended by 25 CIOs from various long-only and hedge funds. Their most favorite is growth style but least favorite on bitcoin.
Aside from growth style, CIOs preferred value style, followed by commodities. Bitcoin was the least popular investment, followed by fresh IPOs and rate-sensitive assets.
Unlike Goldman Sachs, Bank of America (BofA) discovered that bitcoin was a popular investment among asset managers polled. According to the bank’s May Fund Manager Survey, which included 216 fund managers with $625 billion in total assets under management (AUM), “long bitcoin” was the most crowded trade on the planet. Long bitcoin was the second-most popular trade in the prior month.
Unlike the CIOs polled, Goldman Sachs analysts are optimistic about bitcoin’s future. They previously stated that institutional investors are drawn to Bitcoin due to a fear of missing out (FOMO). Bitcoin was also recently designated as an investable asset and a new asset class by the bank.
Goldman Sachs has also launched a cryptocurrency trading desk with the goal of providing a comprehensive range of cryptocurrency assets. Institutional demand for BTC continues to rise, according to the business.