Wells Fargo is the latest big bank to go crypto, announcing that it’s going to allow bitcoin transactions for its “qualified investors” soon.
Specifically, Wells Fargo said Wednesday it would provide professionally managed funds for its wealthier clients, for whom the risks associated with digital currencies would provide the best outcomes.
Cryptocurrency was trending down, however, in the wake of China’s new set of restrictions.
After seeing its worth almost touch $60,000 May 10, following Tesla CEO Elon Musk’s guest-hosting appearance on Saturday Night Live, investors in bitcoin watched on Wednesday as it sunk to around $39,000 during the early afternoon.
Other digital currencies felt the impact of the sell-off, too, with their numbers taking a hit.
Musk recently reversed his stance and said Tesla would no longer accept cryptocurrency payments for Tesla cars.
The Wells Fargo Investment Institute (WFII) opinion, though, was clear in its report, “The investment rationale for cryptocurrencies.”
“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 even then through professionally managed funds,” it said.
Wells Fargo isn’t going it alone.
Goldman Sachs allows investors to trade with a derivative tied to bitcoin prices, Bloomberg News reported earlier this month.
Morgan Stanley in March became the first big U.S. bank to offer its wealth management clients access to bitcoin funds, according to a CNBC report.
JPMorgan Chase, too, appears poised to allow similarly qualified clients to invest in an actively managed bitcoin fund for the first time, CoinDesk reported in April.
Bank of N.Y. Mellon, according to a story on investment.com, in February formed a new unit to help clients with digital assets.