BBVA Advocates for Crypto Investment: A Pioneering Move by a Major Bank

LONDON (Reuters) - Spanish lender BBVA is urging its wealthy clients to allocate up to 7% of their investment portfolios to cryptocurrencies, according to an executive at the bank's private bank division. Philippe Meyer, head of digital & blockchain solutions at BBVA Switzerland, made the announcement at the DigiAssets conference in London on Tuesday.

Meyer said that since September 2022, BBVA has been advising its private customers on bitcoin investments, with a riskier profile allowing up to 7% of portfolios in crypto. The 3-7% advice currently applies to bitcoin and ether, but the bank plans to expand the advice to other cryptocurrencies later this year.

Cryptocurrency prices have surged in recent years, with bitcoin hitting a new record high in May. This recovery follows a period of lows in 2022 when several top exchanges, including FTX, collapsed, leaving millions of investors out of pocket. The rebound has been helped by U.S. President Donald Trump's pro-crypto stance.

While many private banks execute client requests to buy cryptocurrencies, it is relatively unusual for them to advise their clients to actively invest in them. Regulators continue to warn about the risks of cryptocurrencies, saying investors should expect to lose all their money. The European Securities and Markets Authority said earlier this year that 95% of EU banks do not engage in crypto activities.

Meyer told Reuters on the sidelines of the event that he believes BBVA is one of the first large global banks to advise its wealthy clients to buy cryptocurrencies. The bank has been executing on client requests to buy them since 2021, he said.

Clients have so far been receptive to the advice and have dismissed concerns that the asset is too risky. "If you look at a balanced portfolio, introducing 3% already boosts performance," Meyer said. "At 3%, you are not taking a huge risk."