Wells Fargo stated on Wednesday that it will provide a cryptocurrency investment product to its high-net-worth clients.
High-net-worth According to a company spokesperson, Wells Fargo clients can now gain exposure to Bitcoin & crypto. Wells Fargo is the latest in a long line of traditionally conservative financial institutions to venture into Bitcoin.
In May, it was revealed that Wells Fargo Wealth and Investment Management’s investment-research division would offer qualifying investors an actively managed Bitcoin and crypto strategy.
This makes the wealth and investment management branch of the firm one of the largest in the United States.
Business Insider writes that the corporation has been hunting for “a professionally managed solution” for months, according to Darrell Cronk, president of the research division. But Wells Fargo has openly warned against Bitcoin and other cryptocurrencies because of their lack of regulatory clarity.
A ttweet comparing both of the firm’s previous and present opinions about cryptocurrencies.
In May, Darrell Cronk stated that :
Bitcoin and other cryptocurrencies have a large market capitalization, according to Cronk, which he believes lends them validity in his opinion.
However, it is not apparent at this moment whether Wells Fargo’s wealthy clients will be exposed to Bitcoin directly or via a second-order exposure, such as Grayscale Bitcoin.
The views & opinions
One of the twitter user tweeted and warned the company over missing cryptos in a bank accident.
Someone posted a tweet regarding bitcoins pump after Wells Fargo’s announcement.
Another user thrashed the company over his loss of payments previously when bank refuses to accept payments in cryptos.
Wells Fargo clients exposed to Bitcoin and other cryptocurrencies face the following risk :
“There’s a whole element of consumer protections and regulations that have to still evolve with the changing landscape,” Cronk concluded, “we think there can be a viable investable option for those clients who show an interest.”
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