Assets Under Management AUM

CIOs say Bitcoin is their least preferred investment

Investment bank Goldman Sachs recently hosted two roundtables for hedge fund investment managers. The bank found that it viewed bitcoin as its least preferred investment. In contrast, the latest Bank of America fund manager survey found “long bitcoin” to be the most crowded trade.

CIOs reveal their most and least favorite investments

Goldman Sachs released a note on Saturday after conducting a survey to find out which investments CIOs favor in the current market. Goldman Sachs strategist Timothy Moe wrote:

We hosted two CIO roundtables earlier this week, attended by 25 CIOs from various long-only funds and hedge funds. Their preferred style is the growth style but the least preferred on bitcoin.

In addition to the growth style, CIOs favored the value style then raw materials. Their least preferred investment was bitcoin, followed by new IPOs and rate sensitive investments.

Goldman Sachs survey: CIOs say Bitcoin is their least preferred investment
The most and least preferred investments by investment managers. Source: Goldman Sachs, Bloomberg

Unlike Goldman Sachs, Bank of America (BofA) found bitcoin to be a popular trade among asset managers surveyed. The bank’s survey of fund managers for the month of May, in which 216 fund managers with total assets under management (AUM) of $ 625 billion participated, showed that the “long bitcoin” was the most congested store in the world. In the previous month, long bitcoin was the second busiest trade.

Unlike the CIOs surveyed, Goldman Sachs analysts are quite optimistic about the outlook for bitcoin. They recently said that fear of missing out (FOMO) is pushing institutional investors towards cryptocurrency. Additionally, the bank recently declared bitcoin to be an investment asset and a new asset class.

Goldman Sachs has also set up a cryptocurrency trading desk with the aim of offering a full range of crypto investments. The company said the institutional demand for BTC continues to grow significantly.

What do you think of CIOs who say bitcoin is their least preferred investment? Let us know in the comments section below.

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asset manager, Bank of America, Bofa, cio bitcoin, cio crypto, cio cryptocurrency, cio survey, fund manager, Goldman Sachs, goldman sachs bitcoin, goldman sachs survey

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