Wells Fargo Unveils New Crypto Strategy For Qualified Clients
Wells Fargo might become the latest banking firm to embrace cryptocurrencies. The bank is set to debut its new cryptocurrency investment strategy in Mid June, according to Business Insider.
From Crypto Cynic to Believer
The strategy would see qualified investors get some form of Bitcoin exposure, as stated by Darrell Cronk, the president of the bank's investment institute.
Cronk said that the bank views crypto as a viable investable asset and that the cryptocurrency space has hit an evolution and maturation of its development.
He noted that the digital assets market is still rapidly evolving and requires due diligence to be regarded as an alternative investment and not a strategic allocation.
This move by Wells Fargo comes a few months after the bank published a report on Bitcoin and other cryptocurrencies. The report painted the crypto market in a positive light as one that has a potential future for wider investments but still warned against the dangers thereof.
Cronk said that the bank had been working on the products for months and is only dedicating crypto as a strategic allocation to diversify qualified investors' portfolio holdings. Cronk said,
“For those investors who qualify and have an interest, there's some good academic and money management work to suggest that it can be a nice diversifier to portfolio holdings.”
For so long, Wells Fargo has hunted down clients and shuttered their accounts for trading Bitcoin. The bank even stopped customers from using its credit cards to purchase cryptocurrency.
Wall Street Banks Making Crypto Moves
Wells Fargo has now joined the growing number of major US banks that have jumped on the crypto train. Banks like Goldman Sachs and JPMorgan Chase & Co. are reportedly seeking to offer their clients Bitcoin-related services.
Major US bank JPMorgan is expected to introduce a Bitcoin fund later this year due to strong customer demand.
Earlier this month, Goldman Sachs announced that it had formed a dedicated cryptocurrency trading team after relaunching its crypto desk.
Since its first launch in March, the crypto desk has been buying and selling Bitcoin futures on CME Group and non-deliverable forwards.