BBVA Advises Clients to Allocate 3% to 7% of Portfolios to Crypto

BBVA, Spain’s second-largest bank, has advised its affluent clients to allocate a portion of their investment portfolios to cryptocurrencies. The bank recommends investing between 3% to 7% of the portfolio into crypto and Bitcoin, depending on the client's desired risk exposure. This advice was given by Philippe Meyer, head of digital and blockchain solutions at BBVA Switzerland, at a conference in London. Meyer noted that the portfolio allocation has been increased for riskier profiles, indicating a growing acceptance of cryptocurrencies within the banking sector.

BBVA’s move to advise on crypto investments comes amid continued warnings from regulators about the risks associated with digital assets. Despite these warnings, BBVA has been executing crypto trades since 2021 and moved to active advisory in late 2024. In March, Spain’s securities regulator allowed the bank to offer Bitcoin and Ether trading in the country. This regulatory approval positions BBVA ahead of most traditional banks in embracing cryptocurrencies.

BBVA’s crypto offerings were launched in a phased rollout to select clients first and will enable users to buy, sell, and manage digital assets through its mobile app in the coming months. This expansion into crypto comes as the European Markets in Crypto-Assets Regulation (MiCA) reached full implementation at the end of 2024. EU crypto companies have until July 2026 to fully comply with its stringent requirements under an 18-month transitional phase.

Other banks are also exploring the crypto space. Santander, for example, is considering the issuance of its own stablecoin and expanding retail crypto services. The bank is looking at offering both dollar and euro-pegged stablecoins, further indicating the growing interest in digital assets within the banking sector.

BBVA’s proactive approach to crypto investments reflects a broader trend where mainstream banks are beginning to recognize the potential of cryptocurrencies. Despite the sector's historical risks, the bank's clients have been receptive to the advice, with Meyer dismissing concerns that the asset was too risky. He noted that introducing 3% of Bitcoin to a balanced portfolio can boost performance without taking on substantial risk.