BBVA, a major Spanish bank, is telling its wealthy clients to consider adding Bitcoin and other cryptocurrencies to their investment portfolios. They’re suggesting anywhere from 3% to a whopping 7%, depending on how much risk the client is comfortable with.
Why the Crypto Push?
This recommendation comes from Philippe Meyer, BBVA Switzerland’s head of digital and blockchain solutions. He revealed this advice at a recent London conference. While BBVA has let clients buy crypto since 2021, this is the first time they’re officially recommending it as part of a balanced portfolio.
The timing is interesting. Bitcoin’s price has been on a tear lately, hitting record highs (near $112,000 at one point). This follows a rough 2022, which saw the collapse of FTX and other crypto exchanges. However, positive sentiment from influential figures, including President Trump’s pro-crypto stance, has helped boost confidence.
It’s a pretty bold move for a bank. Most banks are hesitant about crypto. In fact, a huge majority of EU banks (around 95%) don’t even get involved.
What’s Next for BBVA and Crypto?
BBVA is likely one of the first major global banks to give this kind of official crypto advice to its wealthy clients. They started offering Bitcoin trading and custody services back in 2021 through their Swiss branch, positioning themselves as a leader in blockchain technology.
For now, the advice focuses on Bitcoin and Ethereum. But BBVA plans to add more cryptocurrencies to their recommendations later this year. Meyer believes even a small 3% allocation to crypto could boost overall portfolio returns without excessive risk.
BBVA’s interest in crypto isn’t new. They’ve been exploring Bitcoin and blockchain since at least 2015, seeing it as a key part of the future of finance. They believe early adoption will give them a significant advantage.
(Note: At the time of writing, Bitcoin is trading around $103,945, down 4% for the week.)/p>
