In a move that signals a growing acceptance of digital assets by the traditional finance sector, Spanish lender BBVA is advising its wealthy clients to invest up to 7 percent of their portfolio into cryptocurrencies. The recommendation, revealed at a conference in London, marks the latest sign that some banks are warming to a sector long avoided by mainstream finance because of its risks.
Philippe Meyer, head of digital and blockchain solutions at BBVA Switzerland, said that BBVA's private bank advises clients to invest 3 per cent to 7 per cent of their portfolio in cryptocurrencies depending on their risk appetite. The advisory service started in September of last year through BBVA Switzerland and is initially focused on Bitcoin and Ether. BBVA plans to expand its advice to other cryptocurrencies later this year.
This initiative makes BBVA one of the first large global banks to actively advise its wealthy clients to buy cryptocurrencies, a practice that is relatively uncommon even though many private banks execute client requests to purchase them. Meyer dismissed concerns that the asset is too risky, stating, "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's move comes at a time when crypto use in Spain has doubled in one year, with nearly 9% of citizens holding digital assets in 2023. However, most EU banks remain cautious, with the European Securities and Markets Authority stating that 95% of EU banks do not engage in crypto-related activities.
BBVA has been offering crypto trading and custody services in Switzerland since 2021, taking advantage of the country's progressive crypto regulations. Recently, the bank received approval from the Spanish Securities and Exchange Commission (CNMV) to provide custody and execution services for cryptoassets trading orders in Spain as well. This service will allow customers to manage their Bitcoin and Ether transactions directly within the bank's app, alongside their traditional accounts.