The Spanish financial institution BBVA has recently advised its wealthy clients to consider allocating between 3% and 7% of their investment portfolios to cryptocurrencies, including Bitcoin (BTC). This announcement was made by Philippe Meyer, who oversees digital and blockchain solutions at BBVA Switzerland.
BBVA’s Stance on Crypto Investments
During the recent DigiAssets conference in London, Meyer elaborated on this recommendation. He indicated that BBVA began actively guiding clients on crypto investments starting in September 2022, noting that those with a greater risk tolerance might be offered a digital asset allocation as high as 7%.
This shift represents a notable change in the bank’s approach to cryptocurrencies. While BBVA has been accommodating client requests for cryptocurrency purchases since 2021, this is the first time it has begun to formally recommend specific allocations within portfolios.
The endorsement from BBVA coincides with a surge in cryptocurrency values, particularly as Bitcoin approached impressive highs of around $112,000 in May. This upward trend marks a recovery from a challenging period in 2022 when the prominent exchange FTX faced collapse, leading to major investor losses.
The resurgence in digital currencies has gained momentum, bolstered by notable support from high-profile figures, including US President Donald Trump, who has championed a pro-crypto stance. Legislative initiatives in the Senate are also advancing, further contributing to this newfound interest.
Despite the rising interest in cryptocurrencies, many private banks often only execute client orders for crypto purchases without actively recommending such investments—making BBVA’s approach fairly unique in the sector.
The European Securities and Markets Authority has previously indicated that roughly 95% of European banks do not engage in cryptocurrency activities, which underscores the industry’s cautious attitude.
Future Aspirations
Meyer highlighted that BBVA may be one of the first major global banks to officially advise its affluent clients on digital asset investments. In June 2021, BBVA initiated Bitcoin trading and custody services via its Swiss branch, aiming to establish its position as a leader in the adoption of blockchain technology.
At that time, the CEO of BBVA Switzerland, Alfonso Gómez, stated that this pioneering offering positioned the bank as a key player in the rapidly changing digital landscape.
The bank’s current investment advice predominantly revolves around Bitcoin and Ethereum (ETH), but there are intentions to broaden this guidance to include more cryptocurrencies later this year.
Meyer is optimistic about the strategy, suggesting that even a modest 3% allocation to cryptocurrencies could boost overall portfolio performance without posing excessive risk.
BBVA’s interest in digital currencies is not new; the institution has been researching Bitcoin and blockchain technology since at least 2015. In a forward-looking statement, BBVA acknowledged that early adoption of digital currencies by institutions could play a pivotal role in creating a new monetary system, emphasizing the benefits for those who are quick to adapt.
As per the latest data, the leading cryptocurrency trades at $103,945, having experienced a 4% decline over the week.
Image credit to DALL-E; financial chart from TradingView.com.
