Spanish bank BBVA now recommends that its affluent clients allocate 3-7% 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.
This marks a significant evolution in the bank’s approach, as it has been facilitating client requests for cryptocurrency purchases since 2021 but is now formally advising on portfolio allocations.
This recovery follows a turbulent period in 2022, when the collapse of prominent exchanges like the defunct FTX left many investors facing significant losses.
The resurgence of digital currencies has also been bolstered by supportive 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.
Despite this increased interest for cryptocurrencies, many private banks typically execute client requests to buy cryptocurrencies, which is relatively rare for them to actively recommend such investments.
Meyer emphasized that BBVA is likely among the first major global banks to formally advise its wealthy clientele on digital asset investments. In June 2021, the bank launched Bitcoin trading and custody services through its Swiss subsidiary, aiming to establish itself as a leader in adopting blockchain technology.
BBVA’s CEO for Switzerland, Alfonso Gómez, remarked at the time that this innovative offering positioned the bank as a benchmark institution in the evolving digital landscape.
Meyer expressed confidence in the strategy, suggesting that even a modest 3% allocation could enhance overall portfolio performance without exposing clients to significant risk.
BBVA’s interest in digital currencies is not a recent development; the bank has been exploring Bitcoin and blockchain technology since at least 2015.
When writing, the market’s leading crypto trades at $103,945, recording a drop of 4% in the weekly time frame.
Featured image from DALL-E, chart from TradingView.com
