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BBVA encourages its clients to purchase Bitcoin. Credit: Pixabay, Pexels
The Spanish bank BBVA has now formally advised its wealthy clients that they can allocate up to 7% of their portfolios to Bitcoin. This marks a significant shift in the way traditional banks view digital currencies.
“With private customers, since September last year, we started advising on Bitcoin,” said Philippe Meyer, head of digital & blockchain solutions at BBVA Switzerland, during the DigiAssets conference in London. He continued, “For the riskier profiles, we allow up 7 percent of portfolios in cryptocurrency.” (Cited by Bitcoin Magazine).
BBVA’s Private Wealth Division now recommends between 3 and 7 per cent of the total portfolio in Bitcoin. This depends on a client’s level of risk tolerance. Many banks will execute crypto trades upon request. However, it is rare that a global institution recommends buying Bitcoin.
Meyer explained how even small allocations boost performance: “If we look at an balanced portfolio, adding 3 percent already increases the performance.” You are not taking on a lot of risk by investing 3 percent.
BBVA has been offering Bitcoin trading, custody and investment advice since 2021. But this is the very first time they’ve given direct advice.
In 2015, the bank stated that institutions who understand Bitcoin will “lead a new monetary system.” Is BBVA in the lead? Would you follow your bank’s advice to buy Bitcoins?
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