London, June 17 (Reuters) – Spanish lender BBVA (bbva.mc)open a new tab It is advising wealthy clients to invest up to 7% of their portfolios in cryptocurrencies, the executive said Tuesday in the latest indication that some banks are warming into a sector that has long been avoided by mainstream finances due to risk.
BBVA’s private banks have advised clients to invest between 3% and 7% of their portfolio in cryptocurrency, in response to Philippe Meyer, head of BBVA Swiss’ Digital & Blockchain Solutions.
“We started advising on Bitcoin with our private clients last September,” Meyer said. “Risable profiles allow encryption up to 7% (in portfolio).”
Cryptocurrency prices have skyrocketed in recent years, with Bitcoin reaching another record high in May.
This follows a recovery from the lows in 2022 when a series of top exchanges, including FTX, collapsed and millions of investors left their pockets. Their rebound was helped by the custody attitude of President Donald Trump.
Many private banks will make client requests to buy cryptocurrency, but it is relatively rare to advise them to actively purchase.
Regulators continue to warn about the risks of cryptocurrency, saying investors should expect to lose all their money. The European Securities and Markets Administration said earlier this year that 95% of EU banks are not engaged in crypto activity.
Speaking to Reuters on the sidelines of the event, Meyer told Reuters that he believes the BBVA is one of the first large global banks to advise wealthy clients buying cryptocurrency. He said it was running since 2021 to buy at client requests.
While 3-7% advice is currently applied to Bitcoin and Ether, he said the BBVA will expand its advice to other cryptocurrencies later this year.
Meyer said the client had been accepted for advice so far, dismissing concerns that the assets were too dangerous.
“If you look at a balanced portfolio, introducing 3% already improves performance,” Meyer said. “At 3%, you’re not taking a big risk.”
