Bitcoin plunged 35% in May, but institutional investors on Wall Street are still evaluating it as a bubble, Bloomberg reported on the 15th (local time).
According to a survey of Wall Street fund managers by Bank of America (BOA), about 80% said cryptocurrency is a bubble. That’s up from 75 percent of last month’s survey.
207 fund managers participated in the survey, and their assets are $645 billion.
Fund managers agreed that cryptocurrencies such as Bitcoin cannot be financial assets, considering extreme price volatility and lack of regulation.
However, more institutional investors are entering Bitcoin markets, Bloomberg said. This can be attributed to recognizing the value of cryptocurrency such as Bitcoin as a product. Thus, we should not recognize the original value of cryptocurrency.
Goldman Sachs, the world’s largest investment bank, announced on the previous day that it plans to release Ethereum-related products, which are the second largest in market capitalization after Bitcoin products. Goldman Sachs added that it is developing Ethereum futures and option trading products.
Tudor Jones, CEO of Tudor Investment, an investment company, said it is investing in Bitcoin to hedge inflation. He added that it is making up a portfolio of 5% gold, 5% bitcoin, 5% cash, and 5% goods. It’s as preparation for inflation.
The survey was conducted from June 4 to June 10.