Bitcoin Threatens To Dethrone US Dollar As Reserve Asset

Buying Bitcoin is the third-most-famous trade among asset managers surveyed by Bank of America. The recent research conducted by the financial institution revealed that Wall Street's interest in digital assets is growing, pushing the pioneer digital coin price to an all-time high. 

As FXStreet recently reported, many prominent investors and high-profile companies are looking into opportunities to capitalize on Bitcoin's outsized price increase. Since the start of the year, the coin's 170% gains made it one of the most profitable assets in the environment of rock-bottom interest rates. The success has not gone unnoticed by the traditional financial industry.

About 15% of fund managers, with assets worth $534 billion under management, mentioned that Bitcoin was a crowded trade, the survey conducted by the Bank of America between December 4 and December 10 revealed. Over half of the respondents bet on buying shares of hi-tech companies, 17% said that selling the US dollar was the most crowded trade.

The chart demonstrates a significant shift towards Bitcoin in December compared to November data amid the growing distrust in the US dollar.

Blockchain, Technology, Smart, Bitcoin, Money

Image Source: Pixabay

Who's behind the institutional crypto quest?

MicroStrategy Inc was among the first large corporations to invest in Bitcoin on the scale. The company amassed over 40,000 BTC on its accounts as a hedge against inflation and USD devaluation caused by Fed's ultra-loose monetary policy. 

Square, Massachusetts Mutual Life Insurance and many other companies and individual investors like Paul Tudor Jones followed suit. Basically, they showed how to think about Bitcoin as a substitute for cash, Seth Ginns, a managing partner at a New York-based investment firm CoinFund noted on a webinar hosted by Evercore ISI on Tuesday. The expert says that this is just the beginning of the trend that will start rolling out for real during the next year.  

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Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational ...

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