LONDON, June 17 (Reuters) – Spanish lender BBVA (BBVA.MC), opens new tab is advising rich shoppers to take a position as much as 7% of their portfolio into cryptocurrencies, an government stated on Tuesday, within the newest signal some banks are warming to a sector lengthy prevented by mainstream finance due to its dangers.
BBVA’s personal financial institution advises shoppers to take a position 3% to 7% of their portfolio in cryptocurrencies relying on their threat urge for food, Philippe Meyer, head of digital & blockchain options at BBVA Switzerland, instructed the DigiAssets convention in London.
“With personal prospects, since September final yr, we began advising on bitcoin,” Meyer stated. “The riskier profile, we permit as much as 7% of (portfolios in) crypto.”
Cryptocurrency costs have surged lately, with bitcoin hitting one other report excessive in Could.
That follows a restoration from lows hit in 2022 when a collection of high exchanges, together with FTX, collapsed, leaving hundreds of thousands of buyers out of pocket. Their rebound has been helped by U.S. President Donald Trump’s pro-crypto stance.
Whereas many personal banks execute shopper requests to purchase cryptocurrencies, it’s comparatively uncommon for them to advise them to actively purchase them.
Regulators proceed to warn concerning the dangers of cryptocurrencies, saying buyers ought to count on to lose all their cash. The European Securities and Markets Authority stated earlier this yr that 95% of EU banks don’t have interaction in crypto actions.
Chatting with Reuters on the sidelines of the occasion, Meyer instructed Reuters he believed BBVA was one of many first massive international banks to advise its rich shoppers to purchase cryptocurrencies. It had been executing on shopper requests to purchase them since 2021, he stated.
The three-7% recommendation at present applies to bitcoin and ether, however BBVA plans to broaden the recommendation to different cryptocurrencies later this yr, he stated.
Meyer stated that shoppers had been receptive thus far to the recommendation, and dismissed issues the asset was too dangerous.
“In the event you have a look at a balanced portfolio, in the event you introduce 3% you already increase the efficiency,” Meyer stated. “At 3% you aren’t taking an enormous threat.”
