Wells Fargo had earlier in the year that they planned to offer cryptocurrency investments to clients. Something that was referred to as a “professionally managed” cryptocurrency investment. Now the bank has announced that it will begin offering cryptocurrency exposure to its high net worth clients.
The Wells Fargo Investment Institute had been working on a way for it to be able to best offer its clients an option to invest in cryptocurrency. Following a re-evaluation on the bank’s stance on crypto. “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,” Darrell Cronk told Insider back in May.
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Cronk, who is the President of Wells Fargo, alluded to the market size of the crypto market making it a good alternative investment for clients. The solution had been in the works for months as the Wells Fargo Investment Institute, which is the investment-research division of Wells Fargo Wealth and Investment Management, devised a way to provide this service to investors.
Getting Clients Exposed To Cryptocurrency
Wells Fargo will only be offering crypto exposure to some clients as part of its wealth management. These clients consist of high-net-worth individuals who want to get more exposure to the market without having to buy into cryptocurrencies themselves.
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Cronk revealed that this comes with “quite a bit of interest” from their clients. And Cronk’s strategy team has published the first-ever research report on cryptocurrencies by the institute.
“There’s a lot of education and informational work that has to be done. It is a complex topic, and while investors have interest, it is important that they understand it for what it is.” – Darrell Cronk, President, Wells Fargo
Banks Getting Into Cryptocurrencies
Wells Fargo is not the first bank to provide cryptocurrency exposure to its clients. Banks have reported that there continues to be increasing demand from clients for a way for them to get involved in digital assets. In fact, Wells Fargo comes behind a couple of big banks that have provided crypto investment options for their clients.
This carried out by Goldman Sachs revealed that 50% of the ultra-wealthy want increasing exposure to cryptocurrencies. To which Goldman Sachs has responded by offering clients the option to trade Bitcoin and Ether Options and Futures. Hopefully, other digital assets to be added to the mix.
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Big bank JP Morgan also ramped up , banking on increasing demand for cryptocurrencies. While this between NCR and NYDIG will see customers be able to buy bitcoin across 650 banks.
As consumers demand more ways to get into the market, it is only natural to expect an influx of these types of products to help clients get more exposure to cryptocurrencies.
Featured image from Investor Junkie, chart from TradingView.com