3 in 4 fund managers say bitcoin in a bubble

Mumbai: Most fund managers believe bitcoin is in a bubble, a global fund managers' survey by Bank of America Securities showed. About 74% of the fund managers surveyed believe bitcoin is in a bubble and only 7% think equities are in a bubble.

Around 177 participants with $530 billion in assets under management responded to the global fund managers' survey. Fund managers also believe bitcoin is the second-most crowded trade, with technology stocks continuing to be the most crowded.

Bond tantrum is seen as a tail risk by 32% of the respondents followed by inflation which was seen as a tail risk by 27%.


The April fund manager survey showed modest rotation towards technology, healthcare, REITs out of emerging markets and staples.

While the Covid pandemic is not yet over, 64% of the fund managers expect the global economy to get a lot stronger. Nearly 21% say they are currently taking higher than normal risk levels, the survey showed.