A bitcoin bubble is brewing, according to 74% of respondents in Bank of America’s latest Global Fund Manager Survey.
That compares with only 7% who think stocks are in a bubble and reflects the highly speculative nature and image of the popular cryptocurrency. The survey, taken April 6 through 12 by 200 fund managers with $553 billion of assets under management, also showed that a long position on bitcoin was viewed as the second most crowded trade (27%), behind a long position on technology stocks (31%).
The survey comes as bitcoin continues to surge in value. Bitcoin climbed to an all-time intraday high of $63,707 Tuesday, a day ahead of the initial public offering of cryptocurrency exchange Coinbase, which BofA estimated last month to have a 40% share of the cryptocurrency exchange market. Earlier this year, Tesla added to the bitcoin mania by investing $1.5 billion in the cryptocurrency and then announcing it would accept bitcoin as payment for its cars.
Even so, about 10% of respondents in the BofA survey expect bitcoin to outperform other asset classes this year.
Last month, BofA said in a report that it believed “the main argument for Bitcoin is not diversification, stable returns, or inflation protection, but sheer price appreciation.”