BBVA Encourages Wealthy Clients to Invest in Bitcoin
Spanish banking giant BBVA is now advising its wealthiest clients to invest in bitcoin. This comes just months after the bank announced plans to offer cryptocurrency trading to its customers.
According to a Reuters report, BBVA recommends that its top clients allocate 3% to 7% of their portfolio to Bitcoin adn other cryptocurrencies. philippe Meyer, Head of Digital & Blockchain Solutions at BBVA Switzerland, explained this at the DigiAssets conference in london. He said the bank has been giving this advice sence September 2024.
The suggested allocation varies based on an investor’s risk tolerance. “For riskier profiles, we allow up to 7% in crypto,” Meyer noted.
BBVA’s decision to recommend crypto investments reflects a growing trend among traditional financial institutions. The European Securities and Markets Authority (ESMA) has warned about the potential risks of crypto to global financial stability. However, more banks are becoming open to crypto activities. Market experts predict that it’s only a matter of time before banks start stockpiling Bitcoin.
BBVA has been executing client requests for BTC purchases since 2021, when it launched bitcoin trading for private clients in Switzerland.JPMorgan, another major bank, recently announced it would allow clients to buy and hold Bitcoin. CEO Jamie Dimon, once a crypto skeptic, now supports customer access to digital assets. JPMorgan will also accept spot Bitcoin ETFs as collateral for loans to wealthy clients, with BlackRock’s BTC ETF being the first accepted.
