Goldman Sachs Bank Dubs Cryptocurrency 'Least Favorite Investment'

Urian B., Tech Times 06 June 2021, 11:06 pm

Goldman Sachs Bank has just recently held two different roundtable sessions for the chief of investment officers of hedge funds. The bank was able to find that they actually see Bitcoin as their very least favorite investment.

Goldman Sachs Thoughts on Bitcoin

In contrast to everything, the latest Bank of America Fund Manager Survey actually found that "long bitcoin" remained the most crowded trade. According to the news.Bitcoin.com, Goldman Sachs finally published a note this Saturday after conducting a wide survey in order to find out which particular investment chief investment officers or CIOs actually favored in the current market.

Timothy Moe,Goldman Sachs strategist wrote that they had hedl two different CIO roundtable sessions that took place early in June and that there were 25 CIOs in attendance coming from a number of long-only and hedge funds.It was noted that their most favorite is actually the growth style with their least favorite being Bitcoin.

Is Bitcoin a Good Investment?

It was noted that aside from growth style, the CIOs actually favored the value style as well as the commodities. Their very least favorite investment was found to be Bitcoin, which was then followed by upcoming new IPOs, and other rate-sensitive investments.

Quite the opposite from Goldman Sachs, the Bank of America or BofA found that Bitcoin was actually considered a popular trade among certain asset managers. The bank's very own Fund Manager Survey for May, in which around 216 fund managers along with $625 billion when it came to total assets under management or AUM participated.

Is Cryptocurrency Built on FOMO?

This showed that "long bitcoin" was actually the most crowded trade in the whole world. In just the previous month, the long bitcoin actually became the world's second-most crowded of trades compared to other options.

Quite unlike the surveyed CIOs, the analysts at Goldman Sachs' are actually quite bullish when it comes to the outlook of Bitcoin. They also recently stated that fear of missing out or FOMO is now driving institutional investors to the new cryptocurrency. The bank, moreover, recently declared that Bitcoin is actually an investable asset and considered a new asset class.

Goldman Sachs on $BTC

Goldman Sachs has now also established a whole cryptocurrency trading desk along with the aim to offer a full spectrum of other crypto investments. The firm also noted that institutional demand for $BTC continues to grow quite significantly.

A certain reply on the news on Twitter asked the question that since Bitcoin will finally be a legal tender or legal currency of El Salvador, will this mean that the USA IRS would not be able to tax Americans on their Bitcoin holdings as an asset with the capital gains tax any more.

Although Goldman Sachs is still quite enthusiastic about Bitcoin and other cryptocurrencies, there are also other banks slowly planning to adapt Bitcoin as a legitimate asset. There are also other banks and investment institutions that are slowly adopting Bitcoin and other cryptocurrency as a legitimate asset.

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Written by Urian B.