Spanish lender BBVA is advising wealthy clients to invest up to 7 per cent of their portfolio into cryptocurrencies, marking the latest sign that some banks are warming to a sector long avoided by mainstream finance because of its risks.

BBVA's private bank advises clients to invest 3 per cent to 7 per cent of their portfolio in cryptocurrencies depending on their risk appetite, Philippe Meyer, head of digital and blockchain solutions at BBVA Switzerland, told the DigiAssets conference in London on Tuesday.

"With private customers, since September last year, we started advising on bitcoin," Meyer said. "The riskier profile, we allow up to 7 per cent of portfolios in crypto."

Meyer told Reuters on the sidelines of the event that he believed BBVA was one of the first large global banks to advise its wealthy clients to buy cryptocurrencies. The bank had been executing on client requests to buy them since 2021, he said.

The 3 per cent to 7 per cent advice currently applies to bitcoin and ether, but BBVA plans to expand the advice to other cryptocurrencies later this year, Meyer said.

Meyer dismissed concerns that the asset was too risky for wealthy portfolios. "If you look at a balanced portfolio, if you introduce 3 per cent you already boost the performance," Meyer said. "At 3 per cent you are not taking a huge risk."

The move reflects a broader shift in how traditional financial institutions view digital assets like bitcoin, which were once considered too risky for mainstream finance. In Switzerland, BBVA has operated a crypto trading and custody service since 2021, with the country's progressive crypto regulations making it a hub for digital finance.

While many private banks execute client requests to buy cryptocurrencies, it is relatively unusual for them to advise clients to actively buy them. Regulators continue to warn about the risks of cryptocurrencies, saying investors should expect to lose all their money. The European Securities and Markets Authority said earlier this year that 95 per cent of EU banks do not engage in crypto activities.

Cryptocurrency prices have surged in recent years, with bitcoin hitting another record high in May. The rebound has been helped by U.S. President Donald Trump's pro-crypto stance, following a recovery from lows hit in 2022 when a series of top exchanges, including FTX, collapsed.

The mainstreaming of digital assets has been one of the most significant developments within banking during the first half of 2025. JPMorgan Chase chief executive officer Jamie Dimon said in May that the bank now offers its clients access to bitcoin, while Banco Santander SA is reportedly considering offering a stablecoin and providing its digital bank's retail clients with access to cryptocurrencies.

Meyer said that clients had been receptive so far to the advice, suggesting that wealthy investors are increasingly viewing cryptocurrencies as legitimate asset classes within diversified portfolios.

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