It comes as no surprise that Bitcoin ranks among the most crowded trades
The COVID-19 pandemic has reshaped much of the financial landscape. The US dollar, in particular, has weakened, prompting many asset managers to explore alternatives that offer better protection against inflation. As confidence in cash has eroded, investors are increasingly considering assets outside traditional fixed income and cash holdings.
One of the assets that has drawn significant attention is Bitcoin. A recent Bank of America Global Fund Manager (GFM) survey shows that Bitcoin has moved up the list of the most crowded trades. The digital asset surpassed traditional options like bonds and emerged as the third most crowded trade, receiving 15% of respondents’ votes.
Tech stocks and short-dollar positions occupied the first and second spots, attracting approval from 52% and 18% of surveyed fund managers, respectively.
List of the most crowded trades as per the BofA GFM survey. Source: Twitter
The findings stem from the Bank of America Global Fund Manager survey conducted between December 4 and December 10, which polled 217 fund managers worldwide. The results indicate a notable shift toward cryptocurrencies, a move likely driven both by the subpar performance of some traditional assets and strong recent gains in Bitcoin’s price.
High-profile figures in finance and technology have helped legitimize Bitcoin as an investment. Executives such as Michael Saylor of MicroStrategy, Jack Dorsey of Square, and billionaire investor Paul Tudor have openly adopted or praised Bitcoin, influencing other investors. Institutional and corporate investors like MassMutual and Ruffer Investment Company have also made public Bitcoin allocations, further signaling growing institutional interest.
According to Bloomberg’s coverage of the survey, fund managers have become underweight in cash for the first time since May 2013. That shift away from cash underscores why alternative stores of value and growth assets—like Bitcoin and tech equities—have become more prominent in portfolio thinking.
Bitcoin has repeatedly appeared among the most crowded trades in prior surveys, including in September 2017 when it received 26% of respondent votes. Bitcoin’s market capitalization surpassed that of some major banks in August of the same year, and since then has continued to grow, maintaining a strong position in investors’ minds as an inflation hedge and speculative opportunity.
Overall, the GFM survey highlights a broader reallocation of capital: with cash positions trimmed and concerns about currency debasement rising, fund managers are increasingly favoring assets perceived to offer protection or outsized returns. Bitcoin’s recurring presence on the crowded trades list reflects its growing role in portfolio conversations, even as opinions remain divided and risk considerations persist.