Despite Bitcoin and cryptocurrencies being in a free-fall lately, more major institutions are still piling to offer crypto funds to their clients.
Major U.S. bank Wells Fargo recently announced that it wants to introduce professionally managed funds for its institutional clients.
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In the report, the financial giant stated that that “qualified investors” would gain in the digital currency industry, despite the risk.
This is coming after Bitcoin’s price fell sharply on Wednesday following China’s resolve to impose new limitations on cryptocurrencies.
Crypto fund only available to institutional clients
President of Wells Fargo Investment Institute Darrel Cronk revealed the crypto plans of his team on Wednesday.
He added that the company has set up an actively managed crypto investment strategy for institutional clients.
Cronk emphasized that the company has been working on a “professionally managed solution” for the past few months. He said that the newly-developed strategy will be ready for application next month.
Wells Fargo has been reluctant to offer any crypto-based funds. But Cronk explained that the bank changed its stance after seeing an improvement in the regulation in the industry.
Crypto adoption growing in the mainstream
Wells Fargo, in a report, noted that cryptocurrencies have gained stability and viability as assets. However, there are still notable risks in the market, which is why it’s only considering qualified investors for the exposure.
Wells Fargo has now joined the growing list of U.S. banks that have decided to offer cryptocurrency funds for their clients. Investment bank Morgan Stanley, in March, started offering “high-risk tolerance” access to Bitcoin funds, making it the first US-based financial institution to offer such a service.
JPMorgan Chase also wants to roll out an actively managed funds portfolio for its clients for the first time.