Since late 2024, BBVA's private banking division in Switzerland has been discreetly advising affluent clients to diversify their portfolios by incorporating Bitcoin and Ether. Philippe Meyer, who oversees digital and blockchain solutions at BBVA Switzerland, recommends that clients allocate between 3% and 7% of their investment portfolios to cryptocurrencies. This strategy is designed to enhance returns while minimizing exposure to significant risks.
BBVA began facilitating cryptocurrency trades in 2021 for a select group of clients. By September 2024, Meyer indicated that the bank had officially started advising a 3% allocation in Bitcoin for balanced investment portfolios. Presently, clients with a higher risk tolerance can increase their investment in digital assets to as much as 7%, reflecting BBVA's growing trust in cryptocurrencies as a viable mainstream investment.
Meyer has noted a positive response from clients regarding these recommendations. He asserts that even a modest 3% investment can significantly improve the performance of a diversified portfolio while maintaining a manageable risk level. Although cryptocurrency markets can experience considerable volatility, with potential declines of 20% in a week, private clients appear ready to navigate these fluctuations in hopes of achieving higher returns. Reports indicate that since September 2024, BBVA, Spain’s second-largest bank, has advised its private banking clients to consider a 3% to 7% portfolio allocation to cryptocurrencies based on individual risk profiles.
The regulatory landscape for cryptocurrencies has also evolved, with the European Markets in Crypto-Assets regulation (MiCA) coming into full effect at the end of December 2024. This regulatory framework governs token issuers and service providers across the EU, yet the European Securities and Markets Authority reveals that 95% of EU banks are avoiding crypto-related activities. BBVA distinguishes itself by receiving formal approval from Spain’s securities regulator in March 2025 to facilitate Bitcoin and Ether trading within the country.
Looking ahead, BBVA intends to introduce buy, sell, and portfolio management features within its existing mobile application in the coming months. The rollout will start with a limited number of clients before expanding to a wider audience. As competing banks, such as Santander, investigate their own stablecoin offerings linked to major currencies, BBVA's initiatives could catalyze a broader adoption of mainstream cryptocurrency services. Currently, this cryptocurrency guidance is available only to high-net-worth clients, but if these allocations yield strong returns and BBVA successfully navigates market downturns, other banks may follow suit. This could open up opportunities for more investors to incorporate cryptocurrencies alongside traditional assets like stocks, bonds, and real estate. The ultimate challenge will arise if Bitcoin or Ether experience a sharp decline; if BBVA's cautious strategy withstands such pressures, it may transform how mainstream finance approaches digital assets.
