Spain’s second-largest bank is recommending Bitcoin allocations of between 3% and 7% of portfolios for high-net-worth clients.
According to a report from Reuters, Spanish bank BBVA (Banco Bilbao Vizcaya Argentaria) has advised its wealthier clients to allocate a portion of their investments to bitcoin.
The country’s second-largest bank suggested that affluent clients allocate between 3% and 7% of their portfolio to bitcoin, depending on their desired risk profile.
Philippe Meyer, Head of Digital and Blockchain Solutions at BBVA Switzerland, stated during a conference in London:
“With private customers, since September last year, we started advising on bitcoin.”
The Spanish bank’s approach is based on an analysis of risk-return ratios. Meyer explained that clients have responded positively to the bank’s recommendations, dismissing concerns about the asset’s perceived excessive risk:
“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.”
The bank secured regulatory approval in Spain to operate with cryptocurrencies last March, when the Spanish securities regulator authorized the institution to offer Bitcoin and Ethereum trading in the country. BBVA’s crypto offering was launched through a phased rollout, initially reserved for selected clients. In the coming months, users will be able to buy, sell, and manage digital assets directly through the bank’s mobile app.
BBVA is not the only Spanish bank approaching the crypto world. Santander is also exploring the sector, considering the issuance of its own stablecoin and expanding retail crypto services.