Rich clients of BBVA recommended to allocate up to 7% of their portfolio towards Bitcoin investments
BBVA, the Spanish global bank, has made a bold move by formally advising its wealthy clients to invest up to 7% of their portfolios into Bitcoin and other cryptocurrencies. This marks a significant shift in the banking industry, as it is the first time BBVA is making such a formal recommendation regarding Bitcoin and crypto investments.
The bank's private wealth division has been recommending clients to allocate between 3% and 7% of their portfolios to Bitcoin and crypto, depending on their individual appetite for digital currency investments. This recommendation is a rare move for a global financial institution, as many private banks have only offered to execute Bitcoin or crypto trades upon request.
BBVA's interest in digital currency goes back to 2015, when the bank stated that institutions understanding Bitcoin and digital currencies would lead the new monetary system. This early support for Bitcoin set BBVA apart from many of its peers at the time, as few major banks were willing to publicly engage with the digital currency.
In June 2021, BBVA launched Bitcoin trading and custody services through its Swiss subsidiary for private clients. This move was preceded by the Swiss bank Julius Baer, which began offering similar services to its private clients in the same month.
Philippe Meyer, head of digital & blockchain solutions at BBVA Switzerland, emphasized that even a modest allocation to Bitcoin can have a meaningful impact on portfolio returns. According to Meyer, at a 3% allocation, you are not taking a huge risk, and you already boost the performance of a balanced portfolio. At the same time, he noted that a 7% allocation could provide significant returns for clients with a higher risk tolerance.
BBVA's direct investment guidance has culminated in formally advising wealthy clients to allocate up to 7% of their portfolios into Bitcoin. BBVA Switzerland CEO Alfonso Gómez stated that the bank's innovative offer positions it as a benchmark institution in the adoption of blockchain technology.
This move by BBVA is a testament to the bank's long-term view of Bitcoin as a part of its future. As the digital currency continues to gain mainstream acceptance, it is likely that more financial institutions will follow BBVA's lead in recommending Bitcoin and crypto investments to their clients.
