The investment strategy is likely to be available to eligible investors in mid-June
Wells Fargo to provide crypto investment option. (Credit: Laimerpramer/Wikipedia.)
Wells Fargo, through its wealth and investment management division, has unveiled its plans to evaluate and introduce an actively managed crypto investment strategy for its wealthy clients.
The US-based financial services company has shared its views through a special report titled ‘The Investment Rationale for Cryptocurrencies’.
The company said that it considers digital assets as an alternative investment for qualified investors through a professionally managed fund.
Wells Fargo Investment Institute president Darrell Cronk told Business Insider: “The investment strategy has been in development for months and is likely to be available to qualified investors around mid-June.
“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.”
Wells Fargo said that cryptocurrencies have evolved into a considerable investment asset, where more than 9,000 cryptocurrencies having $2.4 trillion in capitalisation, as of 7 May 2021.
Also, cryptocurrencies have become a valid consideration as a portfolio option for qualified investors, which do not pay interest or dividends, or fetch expected earnings.
According to research, macroeconomic and financial conditions are significant for cryptocurrencies, but are anticipated to be transitory price drivers over short-term horizons.
Earlier this month, Goldman Sachs Group has allowed Wall Street investors to trade with a derivative tied to bitcoin prices, according to a Bloomberg News report.
Also, Morgan Stanley has started offering its wealth management clients with access to bitcoin funds, reported CNBC in March this year.
Wells Fargo, in its report, said: “We view digital assets as an alternative investment for qualified investors through a professionally managed fund.
“Due to the uniqueness, complexity and continued evolution of these assets, we plan to produce a series of reports with a goal of increasing investor education and understanding of cryptocurrencies.”
Wells Fargo Investment Institute is a registered investment adviser and a wholly-owned subsidiary of Wells Fargo Bank, a bank affiliate of Wells Fargo & Company.