- BBVA recommends 3-7% of crypto allocation among the affluent Swiss private banking consumers.
- BBVA is choosing Bitcoin and Ethereum to diversify the wealth of high-net-worth clients.
- The crypto advice provided by BBVA is motivated by positive client response to increased market confidence.
BBVA, a Spanish bank, is promoting investments in cryptocurrencies such as Bitcoin to its high-net-worth customers, according to Reuters. The move is an indication that there has been a change in the way some of the biggest financial institutions regard digital currencies, which have been a risk that should be avoided.
However, BBVA’s private banking division, based in Switzerland, is suggesting that clients allocate between 3% and 7% of their investment portfolios to cryptocurrencies, depending on how much risk they’re comfortable taking.
BBVA Recommends Bitcoin and Ethereum for Diversified Investment Portfolio
Philippe Meyer, who leads BBVA’s digital and blockchain efforts in Switzerland, shared this advice at a conference in London called DigiAssets. He explained that the bank started guiding clients toward Bitcoin investments in September 2024. For clients willing to take on more risk, BBVA allows up to 7% of their portfolio to be invested in crypto.
Currently, the bank focuses on Bitcoin and Ethereum, the second top cryptocurrency based on market cap, but plans to include other digital currencies in the future. This is a notable step because most banks don’t actively recommend cryptocurrencies.
Many still view them as highly speculative, and regulators, like the European Securities and Markets Authority, have warned that people could lose all their money investing in them. In fact, 95% of banks in the European Union avoid crypto-related activities.
BBVA, however, believes that a small allocation, such as 3%, can improve a portfolio’s performance without exposing investors to excessive risk. Meyer emphasized that clients have responded positively to this approach.
The Move by BBVA Can Increase Mainstream Crypto Adoption
The advice by BBVA coincides with the phase when the prices of cryptocurrencies are on the rise compared to three years ago. For instance, Bitcoin achieved a new price peak last month, having survived a severe crash in 2022, when several crypto exchanges collapsed, which caused many investors to lose a lot of money.
This recent surge has been propelled by positive sentiments from some key figures. The US president, Donald Trump, has spoken in support of cryptocurrencies. The directive by the BBVA to advise clients on cryptocurrency investments commenced in 2021 when the bank initiated the process of guiding interested customers in purchasing digital currencies on request.
Presently, BBVA is making a name as a trend setter among large international banks by aggressively advising its clients to invest. Such a step may inspire other financial organizations to reassess their attitude towards cryptocurrencies.
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