BBVA advises clients to buy Bitcoin. Credit: Pixabay, Pexels
Spanish bank BBVA is now formally advising its wealthy clients to allocate up to 7 per cent of their investment portfolios to Bitcoin, marking a major shift in how traditional banks view digital assets.
“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 added, “The riskier profile, we allow up to 7 per cent of portfolios in crypto.” (Cited by Bitcoin Magazine).
BBVA’s private wealth division now recommends 3 to 7 per cent in Bitcoin, depending on the client’s risk appetite. While many banks execute crypto trades on request, it’s rare for a global institution to formally recommend buying Bitcoin.
Meyer explained that even small allocations can boost returns: “If you look at a balanced portfolio, if you introduce 3 per cent, you already boost the performance. At 3 per cent, you are not taking a huge risk.”
BBVA began offering Bitcoin trading and custody services in 2021, but this is the first time it’s giving direct advice to invest.
Back in 2015, the bank said institutions that understand Bitcoin would “lead the new monetary system.” Is BBVA now ahead of the curve? Would you listen to your bank if it told you to buy Bitcoin?
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