Spain’s Second-Largest Bank Recommends Up to 7% Bitcoin Allocation for Wealthy Clients

Prominent Spanish bank BBVA has been paving the way for mainstream cryptocurrency adoption, advising its wealthy customers to invest in Bitcoin.

With the rapidly diminishing skepticism that was previously held against cryptocurrency, banks have been cautious in their dealings with the sector. Nonetheless, Spain’s second-largest bank, BBVA, remains a pacesetter with its embrace of the digital asset industry.

A recent Reuters report shows that the banking giant has been promoting exposure to Bitcoin as early as September last year. According to the Tuesday report, Philippe Meyer, the head of digital and blockchain solutions at BBVA Switzerland, made this disclosure at a DigiAssets conference in London.

BBVA Advising Wealthy Clients to Buy Bitcoin

Meyer expressed the firm’s support for financial technological innovations and its embrace of the nascent cryptocurrency sector in the speech. He noted that BBVA Switzerland has been advising its wealthy private clients to hold Bitcoin and Ethereum, the two largest cryptocurrencies by market cap.

Meanwhile, the percentage of portfolio exposure varies depending on the client’s risk appetite. For a balanced portfolio, BBVA recommends that clients allocate 3% of their portfolio to buying cryptocurrencies.

However, BBVA recommends up to 7% exposure to adventurous customers. Interestingly, it plans to expand its scope of exposure beyond Bitcoin and Ethereum to include other cryptocurrencies later this year.

Interestingly, this percentage allocation closely aligns with those of other prominent industry leaders. For context, Thomas Petterffy, the 46th wealthiest man in the world, recommended a 2-3% exposure to Bitcoin, while BlackRock CEO Larry Fink suggests a 2-5% portfolio allocation to Bitcoin.

BBVA’s Crypto Venture

Remarkably, BBVA SA’s venture into the cryptocurrency space grows bolder by the day. The leading bank secured approval from Spain’s regulators in March to provide crypto custody and trading services to its clients, marking the first such approval in the country.

Recall that the bank already offered a similar service to customers in Turkey and Switzerland before the expansion to Spain. It also provides other crypto-related services to its customers.

Changing Tides Towards Cryptocurrency

Following the backlash from the FTX crash and the Terra Luna depeg, the banking sector steered clear of digital assets and discouraged meddling in the industry. However, the tides are rapidly shifting, ushering in a new wave of acceptance by traditional financial institutions.

The United States played a huge role in this emerging disposition. Donald Trump declared himself the “Bitcoin President,” created a conducive environment for innovation, and even approved the establishment of a stockpile of major cryptocurrencies.

This has sparked FOMO among nations and corporate firms, with the banking sector also slowly coming around. The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have recently cleared banks to offer crypto custody services to digital asset firms, rescinding an earlier clause that discouraged relationships with both worlds.

Banking giants Standard Chartered Bank and Deutsche Bank have also been exploring the expansion of their crypto offerings to the United States.