Spanish bank BBVA has begun actively advising its wealthy clients to invest in cryptocurrencies, including Bitcoin and Ether, despite warnings from regulators.
BBVA's Investment Recommendations
At the DigiAssets conference in London, Philippe Meyer, Head of Digital & Blockchain Solutions at BBVA Switzerland, disclosed that the bank's private clients may invest between 3% and 7% of their portfolios in Bitcoin, depending on their risk tolerance.
ESMA's Observations on Crypto Risks
The European Securities and Markets Authority (ESMA) continues to warn about the dangers associated with cryptocurrencies. Earlier this year, the agency reported that 95% of banks in the EU do not engage in crypto activities. ESMA's executive director, Natasha Cazenave, indicated that even small issues in the crypto market could lead to wider financial stability concerns.
Crypto Market and Client Reactions
According to Meyer, clients at BBVA have generally responded well to the advice on investing in cryptocurrencies. 'Adding 3% to a balanced portfolio can really improve performance,' he stated, adding that the bank plans to include more cryptocurrencies later this year.
Despite regulatory concerns regarding cryptocurrencies, BBVA is demonstrating a new approach to investment strategies by recommending clients allocate a portion of their assets to digital currencies as the market continues to recover.
