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BBVA’s Crypto Call: Wealthy Investors Encouraged To Allocate Up To 7% To Bitcoin
Spanish bank BBVA has taken a significant step in the realm of cryptocurrency investments, recommending that its affluent clients allocate up to 7% of their investment portfolios to cryptocurrencies like Bitcoin (BTC). This announcement was made by Philippe Meyer, head of digital and blockchain solutions at BBVA Switzerland.
BBVA’s Shift in Approach
Meyer shared this insight during the DigiAssets conference in London, indicating that the bank started advising clients on Bitcoin investments as early as September 2022. The institution has taken a more prominent stance in the cryptocurrency market, having previously facilitated client requests for crypto purchases since 2021 but is now actively offering investment advice.
BBVA’s bold move comes amidst significant growth in the cryptocurrency space. Bitcoin recently reached new record highs near the $112,000 mark in May. This recovery follows a challenging period in 2022 when prominent exchanges like FTX collapsed, leaving many investors dealing with substantial losses. The renewed interest in cryptocurrencies has been bolstered by positive stances from influential figures, including US President Donald Trump with a pro-crypto agenda taking shape in key roles and bills advancing in the Senate.
Cautious Stance of EU Banks
It’s worth noting that BBVA is likely among the first major global banks to officially advise its wealthy clientele on digital asset investments. The European Securities and Markets Authority previously warned that approximately 95% of EU banks do not engage in crypto activities, highlighting the cautious attitude adopted by financial institutions.
Plans for Expansion
Meyer emphasized that BBVA plans to expand its investment advice beyond Bitcoin and Ethereum (ETH) to incorporate additional cryptocurrencies later this year.
Source: bitcoinist.com
