The view that Bitcoin is a hallmark of speculative excess and froth is still going strong, even after last month’s 35 per cent plunge.

About 80 per cent of fund managers surveyed by Bank of America Corp. called the market a bubble, up from 75 per cent in May. The poll, which captures the view of 207 investors with US$645 billion in assets, said “long Bitcoin” is the second-most crowded trade after commodities.

The results point to a skepticism among some professional managers about whether crypto is a viable asset class, given its extreme volatility and regulatory uncertainty. Bubble fears are nothing new for cryptocurrencies, and plenty of investors have voiced doubts over the wisdom of wading into an asset that has no fundamental underpinning.

Even though prices have tumbled, investment banks are still embracing the emerging asset class. Goldman Sachs Group Inc. said it plans to roll out derivatives tied to Ethereum to clients, and Cowen Inc. plans to offer “institutional-grade” custody services for cryptocurrencies.

Prices also got a boost this week from veteran hedge fund manager Paul Tudor Jones, who reiterated his view that Bitcoin is a good hedge against inflation.

“I like Bitcoin as a portfolio diversifier,” Tudor Jones of Tudor Investment Corp. said in an interview with CNBC. “Everybody asks me what should I do with my Bitcoin? The only thing I know for certain, I want five per cent in gold, five per cent in Bitcoin, five per cent in cash, five per cent in commodities.”

Other highlights from survey, which was conducted June 4 to 10, include:

• 72 per cent of investors say inflation is transitory
• 63 per cent expect Federal Reserve to signal tapering in August-September
• Inflation and bond market taper tantrum tied for the top tail risk
• Allocation to bonds at three-year low (net -69 per cent), while stocks back up to 2021 highs (61 per cent)
• Any equity market correction in the next six months likely to be less than 10 per cent, according to 57 per cent of investors
• Managers favor a mix of value and tech stocks as best-performing assets in next four years
• Allocation to Eurozone equities increased to net 41 per cent overweight, highest since Jan. 2018
• Allocation to U.S. equities remained at six per cent overweight
• Exposure to U.K. stocks increased to four per cent overweight, highest since March 2014