- Wells Fargo will bring Bitcoin and other cryptos to its wealthiest clients.
- The firm is the next among many traditional financial companies to embrace cryptos.
- Darrell Cronk says cryptos have now matured to be considered a legitimate investment option.
The heavy-weight champion in US banking — Wells Fargo will soon be bringing Bitcoin (BTC) and crypto options to its wealthiest customers. Presently, based on the brand’s investments and wealth management, it oversees $2 trillion in assets.
This decision came from a company agent who delivered the news to Business Insider. In fact, the information came as a follow-up to an interview from May. Until now, all the public knew was that an actively managed crypto product would be coming soon.
The interview was between Business Insider and the President of Wells Fargo Investment Institute — Darrell Cronk. During this, Cronk says the firm believes that the crypto space is now evolved and matured enough to be seen as a viable investment asset.
Specifically, he says that the enormous market cap between Bitcoin and other cryptos is what led them to see the crypto market as a legitimate source for investments. However, he does remark that he sees crypto investments in a different light compared to traditional investments.
In particular, he says cryptos are an ‘alternative investment’ instead of being a ‘strategic allocation’. Although he stands by cryptos acting as a more interesting asset that could ‘diversify’ one’s portfolio holdings.
In relation to this, the firm’s global investment strategy says that the investment rationale for cryptos is based on their understanding of Bitcoin’s supply and the overall scarcity dynamics. For instance, Cronk comments on this matter,
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.
In conclusion, Cronk speaks about the risk factor that comes with Bitcoin and cryptos. In detail, Cronk believes that during this time of evolving regulations there is still a clear opportunity for investments. Above all, the priority is to protect consumer rights whilst meeting the client’s interests.