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

BBVA, a prominent Spanish lender, has reportedly begun advising its high net worth clients to allocate between 3% and 7% of their investment portfolios to cryptocurrencies. This recommendation is based on the client's risk tolerance, with more aggressive investors being advised to allocate up to 7% of their portfolio to crypto assets. Philippe Meyer, the head of digital and blockchain solutions at BBVA Switzerland, highlighted that the bank has been considering clients’ requests to buy crypto since 2021 and has become one of the first large global banks to provide such advice.

In March, BBVA received approval from Spain’s securities regulator to launch Bitcoin and Ether trading services. This move aligns with the bank's strategy to integrate cryptocurrencies into its everyday banking services. Meyer noted that the bank currently advises clients to invest in Bitcoin or Ether, with plans to add other cryptocurrencies later this year. He emphasized that introducing 3% of the portfolio to crypto would not pose a significant risk and could potentially boost performance.

BBVA's decision to advise clients on crypto investments is notable, as it is unusual for lenders to take such a proactive stance on digital assets. The European Securities and Markets Authority has repeatedly warned about the risks associated with crypto and noted that 95% of EU banks do not engage in crypto activities. However, BBVA's approach reflects a growing trend of mainstream crypto adoption, driven by increased legitimacy in the eyes of policymakers and rising retail adoption.

The adoption of cryptocurrencies has seen remarkable growth in Spain, with a 2024 survey by the European Central Bank indicating that 9% of the Spanish population owns crypto assets, up from 4% in 2022. This trend is part of a broader global movement where positive signals from countries around licensing and oversight have validated the asset class on a wider scale. BBVA's initiative is a significant step in the integration of cryptocurrencies into traditional financial services, reflecting the evolving landscape of digital assets and their increasing acceptance by institutional investors.