San Francisco-headquartered banking giant Wells Fargo is set to add its own cryptocurrency strategy for wealthy clients by mid-June, according to Business Insider.
Darrell Cronk, the president of Wells Fargo Investment Institute (WFII), claims that the bank now views crypto as a "viable investable asset":
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.
As of now, Wells Fargo is in the final stages of doing due diligence for its cryptocurrency solution.
JPMorgan, the largest U.S. bank, is also expected to introduce a Bitcoin fund this summer due to strong customer demand.
Earlier this month, Goldman Sachs also announced the formation of a dedicated cryptocurrency trading team after relaunching its crypto desk earlier this month.
"A nice diversifier"
Wells Fargo is not ready to treat crypto as a strategic allocation, but Cronk said that it could be a "nice portfolio diversifier":
For those investors who qualify and have an interest, there's some good academic and money management work to suggest that it can be a nice diversifier to portfolio holdings.
Cronk also warns that the forthcoming product is "not without risk."
Bitcoin is currently trading at $34,875 after a massive drop.
@u.today Wells Fargo is planning to add a ##crypto strategy for deep-pocketed clients ##cryptonews ##bitcoin
♬ original sound - U.Today
Alex Dovbnya
Arman Shirinyan
Denys Serhiichuk