BBVA recommends: Up to 7% crypto in the portfolio – opportunities for investors!

BBVA recommends: Up to 7% crypto in the portfolio – opportunities for investors!

Spanish bank BBVA (Banco Bilbao Vizcaya Argentaria) encourages its wealthy clients to invest 3 to 7% of their portfolio in cryptocurrencies. This recommendation is based on the individual risk profile of customers and was communicated by the head of digital and blockchain solutions at BBVA Switzerland, Philippe Meyer. According to Meyer, Bitcoin advice has been offered since September 2022 and has found that a 3% portfolio allocation can lead to higher performance. Despite the general reluctance of 95% of EU banks to engage in crypto activities, documented by the European Securities and Markets Authority (ESMA), BBVA has been offering crypto trades since 2021 and began actively advising clients at the end of 2024.

The positive reactions from customers to crypto investment are remarkable. Many have accepted the bank's recommendations well, although concerns about risk have been raised. Meyer explains that BBVA received approval to offer Bitcoin (BTC) and Ether (ETH) in Spain in March 2023. The rollout of these crypto offerings has been gradual and allows users to buy, sell and manage their digital assets via the mobile app.

Regulatory framework and MiCA regulation

BBVA's expansion into the cryptocurrency space is closely linked to the upcoming implementation of the new MiCA (Markets in Crypto-Assets) regulation, which is scheduled to come into force at the end of 2024. This regulation aims to create risk-appropriate regulation and increased investor protection, paving the way for more innovation in the field of distributed ledger technologies (DLT). Interestingly, European crypto companies have until July 2026 to comply with the new requirements of the MiCA regulation.

The MiCA regulation defines three categories of cryptoassets: e-money tokens, asset-referenced tokens and utility tokens. The provisions of the regulation apply to well-known cryptocurrencies such as Bitcoin and Ethereum. However, security tokens and NFTs are not included in the scope of MiCA. Providers must prepare a white paper and submit it to regulators in order to receive permission to trade crypto assets.

Supervision and new requirements

In Germany, many transactions with crypto assets are subject to licensing requirements as a financial service. In addition, a publicly accessible register for crypto asset white papers and providers of crypto asset services will be set up. Providers with more than 15 million active users must expect additional supervision. The public offering of e-money tokens and asset-referenced tokens also requires permission from national regulators.

In addition to BBVA, Santander Bank is also planning to enter crypto trading and is considering issuing its own stablecoin that will be pegged to the dollar and euro. With these developments, the European financial landscape is on the threshold of a new era of digital finance, characterized by regulatory clarity and increased customer interest.