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

BBVA's private banking division has begun advising its clients to allocate a portion of their investments to cryptocurrencies, with the specific allocation depending on the individual's risk tolerance. Philippe Meyer, Head of Digital and Blockchain Solutions at BBVA Switzerland, announced this strategy at a conference in London. According to Meyer, clients with a higher risk appetite are being advised to invest up to 7% of their portfolios in digital assets, with a starting point of 3% for those with lower risk tolerance.

This move by BBVA is significant as it indicates a growing acceptance of cryptocurrencies within the mainstream financial sector. While many banks have been cautious about embracing digital currencies, BBVA has been facilitating crypto purchases for its clients since 2021. Meyer highlighted that BBVA is among the first major global banks to actively recommend cryptocurrency investments to its clients.

Despite ongoing regulatory warnings about the risks associated with cryptocurrencies, BBVA maintains that a modest exposure can enhance portfolio performance without significant risk. The bank's current recommendations focus on Bitcoin and Ether, with plans to include other cryptocurrencies later this year.

This development coincides with a resurgence in cryptocurrency markets, with Bitcoin reaching new highs in May. The rebound follows a downturn in 2022, influenced by the collapse of major exchanges. Supportive policies, such as the pro-crypto stance of U.S. President Donald Trump, have also contributed to renewed investor interest.

BBVA's advice to its affluent clients to allocate up to 7% of their investment portfolios to Bitcoin and Ether underscores a growing acceptance of digital assets within traditional financial institutions. This move reflects a broader trend in the financial sector, where more institutions are exploring ways to integrate cryptocurrencies into their investment strategies. By positioning itself as a forward-thinking institution, BBVA is likely to influence other financial advisors and institutions, potentially leading to increased adoption of cryptocurrencies in mainstream investment portfolios.