BBVA Encourages Investment in Bitcoin
BBVA, one of Spain’s leading banks, is encouraging its elite clientele to invest in Bitcoin, having recently expanded its own cryptocurrency services. The financial institution has recommended that affluent clients consider allocating between 3% and 7% of their investment portfolios to BTC and other cryptocurrencies, depending on their individual risk tolerance.
Insights from Philippe Meyer
Philippe Meyer, who oversees Digital & Blockchain Solutions at BBVA Switzerland, discussed the bank’s crypto investment strategy during a presentation at the DigiAssets conference in London. He indicated that they have been advising high-net-worth individuals on BTC investments since September 2024. He mentioned that clients with a higher risk appetite could potentially invest up to 7% in crypto assets.
Expansion of Cryptocurrency Services
Earlier this year, BBVA began offering cryptocurrency trading and custody solutions in Spain, initially permitting select private clients to trade Bitcoin and Ethereum (ETH). This service will eventually be available to all customers in the bank’s private banking sector, signaling a shift towards encouraging cryptocurrency investments.
This strategy aligns BBVA with a broader trend among traditional banking institutions, which have been increasingly receptive to digital assets. Despite warnings from the European Securities and Markets Authority (ESMA) about the risks cryptocurrencies could pose to financial stability, the push towards crypto adoption continues.
A Changing Landscape in Banking
An ESMA report from earlier highlighted that the majority of banks in the European Union have yet to engage in cryptocurrency activities, but many are showing an interest in gradually exploring this market. Experts predict that it is only a matter of time before more banks significantly increase their Bitcoin holdings.
BBVA has been facilitating client requests for BTC purchases since 2021, when it first introduced Bitcoin trading for private clients in Switzerland. Similarly, other major financial entities are beginning to embrace cryptocurrencies:
For instance, JPMorgan recently announced it would allow its clients to buy and hold Bitcoin, a notable change for CEO Jamie Dimon, who has historically expressed skepticism about digital currencies.
Additionally, JPMorgan revealed that it would accept spot Bitcoin exchange-traded funds (ETFs) as collateral for loans given to affluent clients, with BlackRock’s Bitcoin ETF set to be the first to be integrated into this initiative.
