US bank to offer crypto fund to wealthy clients
Another major US bank is set to introduce a cryptocurrency fund, despite Bitcoin’s recent drop in value.
Wells Fargo announced Wednesday that it will introduce professionally managed funds for its wealthier clients.
In a report, its investment institute said the risks associated with digital currencies meant it would favor “qualified investors.”
It came as the price of Bitcoin fell after China said it was placing new restrictions on the cryptocurrency.
It took the value of the digital coin below $ 34,000 (Â£ 24,030) for the first time in three months on Wednesday, causing other digital currencies to sell off including Ethereum and Dogecoin.
In a report titled “The Rationale for Investing in Cryptocurrencies,” the Wells Fargo Investment Institute (WFII) said it views digital coins as an alternative investment.
“The WFII believes that cryptocurrencies have gained stability and viability as assets, but the risks lead us to favor investment exposure only for qualified investors, and in this case even through funds. professionally managed, âhe said.
It is the latest in a series of major US banks to start trading Bitcoin as cryptocurrency becomes more mainstream.
In March, investment bank Morgan Stanley became the first major US financial institution to offer wealth management clients âhigh-riskâ access to Bitcoin funds.
JPMorgan Chase is also preparing to let selected clients invest for the first time in actively managed funds, the Coindesk trade publication reported in April.
Bitcoin fell on Wednesday after China decided to ban financial institutions and payment companies from providing services related to cryptocurrency transactions.
He also cautioned investors against speculative crypto trading.
Bitcoin had already suffered a big drop last week after Elon Musk said he would no longer accept payments for Tesla cars in the currency.
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