The past few months have seen multiple changes in the financial markets as stocks rallied and dipped continuously. While the S&P market was absent of major changes, the cryptocurrency market had a different tale to tell. New research by the Bank of America showed that “long Bitcoin” was the third most crowded trade compared to traditional long stocks.
Bitcoin’s growing presence in the financial space has forced regulators to sit up and take notice of the world’s largest cryptocurrency. The Bank of America’s July GLobal Fund Manager Survey touched on long Bitcoin’s slip to third place after being beaten by “long tech stocks” and “long ESG”. Long commodities occupied fourth place in the survey.
According to sources within the bank, the survey’s sample space includes the views of over 200 institutional, mutual, and hedge fund managers from all over the world. One standout fact from the July report was that investors were much less bullish now than they were in the first quarter of the year. In May, “long Bitcoin” had rocketed to the top as the most crowded trading asset. Long tech stocks came in second with long ESG taking the last spot on the podium.
The BoA has been paying close attention to the cryptocurrency market as developments progressed in full swing. It has even created a team dedicated to researching cryptocurrency and come up with solid solutions to integrate it into daily transactional activities. Candace Browning, the head of Bank of America’s global research said:
“Cryptocurrencies and digital assets constitute one of the fastest-growing emerging technology ecosystems. We are uniquely positioned to provide thought leadership due to our strong industry research analysis, market-leading global payments platform, and our blockchain expertise.”