- Wells Fargo is planning to adopt a crypto strategy for qualified investors.
- Darrell Cronk warns that the forthcoming product is not without risk.
American multinational financial services company with corporate headquarters in San Francisco, Wells Fargo plans to add its crypto strategy for qualified investors. According to the firm, it will happen by mid-June.
Wells Fargo said it would add professionally managed funds for its more wealthy clients. The firm is not ready to treat crypto as a strategic allocation. But Cronk said it could be a nice diversifier to portfolio holdings.
Darrell Cronk, the president of Wells Fargo Investment Institute (WFII), said:
We think the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset.
WFII believes that cryptos have gained stability and viability as assets. Still, the risks lead us to favor investment exposure only for qualified investors. And even then through professionally managed funds,” says WFII.
Finally, Cronk said it views digital coins as an alternative investment. But he also warns that the genuine product is not without risk.
It is the latest in a series of big U.S. banks to start trading in Bitcoin as the crypto becomes more mainstream.
The largest U.S. bank, JPMorgan, is also planning to introduce a Bitcoin fund for its clients and customers. This month, Goldman Sachs also stated a dedicated crypto trading team after relaunching its crypto desk earlier this month.