Wells Fargo will soon provide customers with “professional management solutions” for cryptocurrencies. The president of Wells Fargo Investment Institute said: “We believe that the cryptocurrency field has undergone the evolution and maturity of its development and has now become a viable investable asset.”
Wells Fargo enters cryptocurrency
Darrell Cronk, a registered investment advisor and wholly-owned subsidiary of Wells Fargo Bank and president of Wells Fargo Investment Institute, revealed his team’s cryptocurrency plans to The Insider in an interview released on Wednesday .
He said that his company is in the final stages of adding an actively managed cryptocurrency investment strategy to its qualified client platform. The cryptocurrency research and due diligence work is led by Greg Maddox, Global Manager Research Director of the Wells Fargo Investment Institute.
Cronk emphasized that the company has been looking for “professional management solutions” for several months, and he hopes that the strategy will be added to the platform around mid-June.
He also explained why Wells Fargo changed its idea of providing encryption services to customers. The company had previously worried about the lack of clarity around the regulation of cryptocurrencies. John LaForge, head of physical asset strategy at the Wells Fargo Investment Institute, said in December that his team has no formal recommendations on cryptocurrencies and customers cannot hold cryptocurrencies at Wells Fargo Bank. However, Cronk clarified:
We believe that the cryptocurrency field has just experienced its evolution and maturity, making it now a viable investable asset.
Nonetheless, he warned that cryptocurrency is an ever-evolving asset class that requires deeper due diligence. He emphasized: “Therefore, in our work, we still do not recommend that this is its own dedicated asset class and strategically allocate it in each portfolio.” “For those qualified and interested investments In addition, some excellent academic and fund management work shows that it can be a good disperser of portfolio assets.”
Wells Fargo’s new cryptocurrency investment strategy is expected to be limited to qualified investors. Cronk explained that there are still “a lot of risks” with cryptocurrency investments, including operational, regulatory, and technical failures. However, he concluded:
The entire element of consumer protection and regulations must evolve as the situation changes. Therefore, we are not without risks, but we believe that there is a viable investment option for those customers who show interest.
How do you see Wells Fargo changing its view on cryptocurrency? Let us know in the comments section below.
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