coincodex.com
Key highlights:
- Wells Fargo is reportedly giving its clients access to investing in Bitcoin and crypto
- The offering will be limited to qualified investors (gross annual income over $200K or net worth over $1 million)
- It's unclear whether the clients will be able to invest directly in Bitcoin or through professionally managed investment products
Wells Fargo to give wealthy clients option of investing in Bitcoin and crypto
According to a Business Insider report, Wells Fargo is the latest major U.S. bank to give its wealthy clients the option of investing in Bitcoin and crypto.
Currently, the exact way in which Wells Fargo clients can get Bitcoin exposure is unclear. For example, they could invest in Bitcoin by directly purchasing the cryptocurrency, or through an investment product such as Grayscale Bitcoin Trust.
In an interview with Business Insider, Wells Fargo research division president Darrell Cronk said that he sees crypto as a type of alternative investment that can serve as a portfolio diversifier. He also commented on Bitcoin’s scarcity and how it could impact BTC as an investment:
“Anytime you reduce the supply of anything, even if demand holds constant, it should increase the price. Over time, as people become more familiar with these and as they become more mainstream, I think it will naturally go up.”
Of course, investing in cryptocurrency doesn’t come without risks. Cronk said that while consumer protections and regulations concerning cryptocurrency still need to adapt, he believes that cryptocurrencies can be a viable investment option for clients that are interested.
In any case, Wells Fargo’s cryptocurrency investment offering will only be available to qualified investors – in order to be considered as qualified, an investor needs to have a gross annual income of at least $200,000, or a net worth of $1 million and above.
Reports about Wells Fargo’s crypto-related plans already started circulating in May, when several publications covered a report published by the bank called “The investment rationale for cryptocurrencies”. In the report, the Wells Fargo Investment Institute (WFII) said that while cryptocurrencies have achieved “stability and viability” as an asset class, they would recommend only qualified investors to participate in the market.
In the report, they also came out in favor of investing in cryptocurrencies through professionally managed funds, which could be a hint to the type of cryptocurrency exposure Wells Fargo’s clients will be able to get through the bank.