Investment bank Goldman Sachs recently held two roundtable meetings for chief investment officers of hedge funds. The bank noted that they view Bitcoin as their least preferred investment. In contrast, Bank of America’s latest fund manager survey found that “long bitcoin” was the busiest trade.
CIOs reveal their most popular and least preferred investments
Goldman Sachs released a note Saturday after conducting a survey to find out what investments chief investment officers (CIOs) prefer in the current market. Goldman Sachs strategist Timothy Moe wrote:
Earlier this week we held two CIO roundtable meetings that were attended by 25 CIOs from various long-only and hedge funds. Her favorite is the growth style, but the least popular with Bitcoin.
In addition to the growth style, CIOs preferred the value style and then commodities. Their least favorite investment was Bitcoin, followed by recent IPOs and interest rate sensitive investments.
The most popular and least preferred investments for chief investment officers. Source: Goldman Sachs, Bloomberg
In contrast to Goldman Sachs, Bank of America (BofA) found that Bitcoin is a popular trade with the wealth managers surveyed. The bank’s fund manager survey in May, which was attended by 216 fund managers with total assets under management of US $ 625 billion (AUM), showed that long bitcoin was the busiest trade in the world. In the previous month, long bitcoin was the second most frequented trade.
Unlike the CIOs surveyed, Goldman Sachs analysts are fairly optimistic about the outlook for Bitcoin. You recently said that fear of missing out (FOMO) is driving institutional investors to cryptocurrency. In addition, the bank recently declared Bitcoin an investable asset and a new asset class.
Goldman Sachs has also set up a cryptocurrency trading desk to offer a full spectrum of crypto investments. The company said institutional demand for BTC continues to grow significantly.
What do you think of CIOs calling Bitcoin their least popular investment? Let us know in the comment section below.
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