The trajectory that the cryptocurrency market has seen in the last few years has been nothing short of remarkable. It has gone from being overlooked by the mainstream financial world to becoming the talk of the world and this last year, in particular, has seen more and more firms dipping their toes into the crypto waters.
The latest of these comes from Wells Fargo. According to recent reports, Wells Fargo’s investment institute intends to offer crypto investment strategies for its wealthy clients. This news was confirmed by the institute’s president Darell Cronk.
Exploring the Crypto Landscape
The report also states that this development has been months in the making as the financial services giant has been looking into a professional solution and is now in the final stages and conducting due diligence. From all indications, this new initiative will be launched by mid-June.
This is significant because Wells Fargo’s investment management oversees almost $2 trillion in assets and is one of the biggest in the United States. Introducing digital assets like Bitcoin to these sorts of clients will go a long way to not only boost adoption but also pump money into the industry as well.
Cronk has given some insight into why this cryptocurrency product will be hitting the market as according to him, the industry is in the current state of maturation and evolution and this now allows it to be a viable investment asset for customers.
It should be noted that in the past, a number of firms and top executives were reluctant to invest in crypto as the market was deemed too unstable or not developed enough but clearly, this has changed. Cronk clarified that while the industry is still expanding, the company does not yet see it as big enough to have its own dedicated asset class in each portfolio.
“For those investors who qualify and have an interest, there’s some good academic and money management work to suggest that it can be a nice diversifier to portfolio holdings,” he said.
This news comes as the bitcoin markets and several top altcoins have taken significant hits in the last 24 hours, with the losses ranging in double digits.