In a move that signals a major shift in traditional finance, Spain’s second-largest bank, BBVA, is now formally advising its private banking clients to allocate between 3% and 7% of their investment portfolios to Bitcoin and other cryptocurrencies. This recommendation, tailored to each client’s risk appetite, marks one of the first times a major European bank has openly advocated for direct crypto exposure as part of a diversified wealth strategy 3.
A Calculated Step Into Crypto
BBVA’s private wealth division began offering advice on Bitcoin investments to its high-net-worth clients in September 2024. Philippe Meyer, Head of Digital & Blockchain Solutions at BBVA Switzerland, explained at the recent DigiAssets conference in London that clients with a higher risk tolerance are encouraged to allocate up to 7% of their portfolios to crypto assets . For those with a more conservative profile, a 3% allocation is suggested, striking a balance between potential returns and risk management 1 3.
“If you look at a balanced portfolio, if you introduce 3%, you already boost the performance. At 3%, you are not taking a huge risk,” Meyer noted, highlighting the potential for even modest crypto allocations to enhance overall returns 3.
From Execution to Advisory
While many banks have been willing to execute crypto trades upon client request, BBVA’s move to proactively recommend Bitcoin investment is a notable departure from industry norms. The bank first launched Bitcoin trading and custody services for private clients in Switzerland in 2021, but this is the first time it has formally integrated crypto into its advisory services 3.
BBVA’s approach reflects a broader trend among global financial institutions. JPMorgan, for example, recently began allowing clients to buy and hold Bitcoin, and now accepts spot Bitcoin ETFs as collateral for loans to wealthy clients . This growing institutional acceptance is gradually reshaping the landscape of private wealth management.
A Strategic Bet on the Future of Finance
BBVA’s interest in digital assets is not new. As early as 2015, the bank recognized the transformative potential of Bitcoin and blockchain technology, predicting that institutions embracing these innovations would lead the next generation of financial services. Today, BBVA’s willingness to formally recommend crypto allocations sets it apart from many European peers, most of whom remain cautious or disengaged from the sector.
Despite ongoing warnings from regulators like the European Securities and Markets Authority about the risks of crypto to financial stability, BBVA’s move underscores a growing belief that digital assets are becoming an essential component of modern investment portfolios.
What’s Next?
BBVA’s current recommendations focus on Bitcoin and Ethereum, but the bank has indicated plans to expand its crypto offerings later this year 5. As more traditional banks follow suit, the integration of digital assets into mainstream wealth management appears increasingly inevitable.
