Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Spanish bank BBVA now recommends that its affluent clients allocate 3-7% of their investment portfolios to cryptocurrencies like Bitcoin (BTC). This announcement was made by Philippe Meyer, head of digital and blockchain solutions at BBVA Switzerland.

BBVA’s Approach To Bitcoin And Crypto Investments

Meyer shared this insight during the DigiAssets conference in London, indicating that the bank began advising clients on Bitcoin investments as early as September 2022. He noted that for clients with a higher risk appetite, BBVA is willing to endorse a digital asset allocation of up to 7%. 

This marks a significant evolution in the bank’s approach, as it has been facilitating client requests for cryptocurrency purchases since 2021 but is now formally advising on portfolio allocations.

The timing of BBVA’s endorsement comes as cryptocurrency prices have seen substantial growth, particularly with Bitcoin reaching new record highs near the $112,000 mark in May. 

This recovery follows a turbulent period in 2022, when the collapse of prominent exchanges like the defunct FTX left many investors facing significant losses. 

The resurgence of digital currencies has also been bolstered by supportive stances from influential figures, including US President Donald Trump with a pro-crypto agenda taking shape in key roles and bills advancing in the Senate.

Despite this increased interest for cryptocurrencies, many private banks typically execute client requests to buy cryptocurrencies, which is relatively rare for them to actively recommend such investments. 

The European Securities and Markets Authority has previously cautioned that a vast majority of EU banks—approximately 95%—do not engage in crypto activities, highlighting the cautious stance of the financial industry.

Plans For More

Meyer emphasized that BBVA is likely among the first major global banks to formally advise its wealthy clientele on digital asset investments. In June 2021, the bank launched Bitcoin trading and custody services through its Swiss subsidiary, aiming to establish itself as a leader in adopting blockchain technology. 

BBVA’s CEO for Switzerland, Alfonso Gómez, remarked at the time that this innovative offering positioned the bank as a benchmark institution in the evolving digital landscape.

Currently, the bank’s investment advice focuses on Bitcoin and Ethereum (ETH), with plans to expand recommendations to include additional cryptocurrencies later this year. 

Meyer expressed confidence in the strategy, suggesting that even a modest 3% allocation could enhance overall portfolio performance without exposing clients to significant risk.

BBVA’s interest in digital currencies is not a recent development; the bank has been exploring Bitcoin and blockchain technology since at least 2015. 

In a forward-looking statement, BBVA acknowledged that institutions embracing digital currencies would likely lead the way in a new monetary system, underscoring their belief in the strategic advantages afforded to early adopters.

https://www.tradingview.com/x/g5AHPExr/

When writing, the market’s leading crypto trades at $103,945, recording a drop of 4% in the weekly time frame. 

Featured image from DALL-E, chart from TradingView.com 

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

President Donald Trump’s family media corporation plans to gobble up $2.5 billion worth of Bitcoin (BTC).

Trump Media and Technology Group Corp., which operates Truth Social, announced on Tuesday that it entered into subscription agreements with approximately 50 institutional investors to facilitate the Bitcoin purchase.

The firm agreed to issue and sell approximately $1.5 billion in its common stock to the investors and $1 billion in 0.00% convertible senior secured notes.

Devin Nunes, Trump Media’s chief executive and chairman, says the firm is adopting a Bitcoin treasury because it views BTC as an “apex instrument of financial freedom.”

“Our first acquisition of a crown jewel asset, this investment will help defend our Company against harassment and discrimination by financial institutions, which plague many Americans and US firms, and will create synergies for subscription payments, a utility token, and other planned transactions across Truth Social and Truth+. It’s a big step forward in the Company’s plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles.”

BTC is trading at $109,395 at time of writing after hitting a new all-time high of $111,814 late last week. The top-ranked crypto asset by market cap is up nearly 2.5% in the past week and 16% in the past month.

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney