Spanish bank BBVA has begun recommending its wealthiest clients to invest in Bitcoin, highlighting the potential of cryptocurrencies in a diversified portfolio.
BBVA's Investment Recommendations
BBVA advises its top clients to allocate between 3% and 7% of their investment portfolios to Bitcoin and other cryptocurrencies. This allocation is dependent on each client's risk profile. Philippe Meyer, the Head of Digital & Blockchain Solutions at BBVA Switzerland, stated that the bank has been advising its private clients on Bitcoin investments since September 2024.
quote: "For a riskier profile, we allow up to 7% of crypto," Meyer noted.
Plans for Crypto Trading
The bank also announced its intention to offer crypto trading and custody services for clients in Spain. Initially, access to purchasing Bitcoin and Ethereum was available to a select group of private clients, with gradual expansion to all private banking customers.
Current Market Trends
BBVA's recommendations align with the growing trend of traditional financial institutions expanding their operations into the cryptocurrency market. The European Securities and Markets Authority previously warned of the risks that cryptocurrencies might pose to financial stability, despite increasing interest from banks in this segment. Experts believe that it won't be long before banks start actively stockpiling Bitcoin.
BBVA's investment recommendations for Bitcoin underscore the growing interest of financial institutions in cryptocurrencies, despite regulatory warnings.
