Wells Fargo Jumps on the Crypto Bandwagon by Offering Crypto Investments

Wells Fargo is the latest mainstream financial company to get into the crypto game and offer its clients access to Bitcoin. While banks and financial institutions getting onto the crypto bandwagon is nothing new and doesn’t come as a surprise, the timing really matters.

Out of all the days, Wells Fargo, the bank chose this time to get into the crypto world.

Wells Fargo is going to offer some of its wealth management clients access to the crypto markets. This is the latest on a string of big banks to get involved in the space but obviously given the timing it is a little amusing.

Now that the perils of price are seen going down will such announcements trickle away in the regularity of their cadence?  Will these investors be able to stomach such moments and still see the upside to some of these assets?

Earlier JP Morgan, Morgan Stanley, and many similar institutions were seen doing their thing with regard to crypto. This is a continuation of that in some ways and looks like Wells Fargo is taking the actively managed approach according to reports.

This might be one of the last of the institutional adoption stories that the crypto space might see for some time. Because it is better to roll out such a product in a bull market than a bear it in a bear market for crypto. In a bull market, people or clients aren’t going to pester with more depressing questions.

Crypto experts have always been skeptical of these banks offering these types of products. This is not because the products are bogus but just because especially for the passively managed funds and it doesn’t seem to appear to be that this would be one of those. There are better ways to gain exposure to Bitcoin than having to pay for a fee and they’re not actually owning it. These types of products are just ways to make it easier for well-heeled investors to jump in.

Of all the banks out there Wells Fargo specifically offering any crypto product has raised a few eyebrows. People are kind of skeptical because their bank does not have a great history of treating its customers right. With wealth management that’s a bit higher priority than the retail customers that have been hurt by Wells Fargo’s practices in the past.

As of now, Wells Fargo is seen reiterating the due diligence required with this and that this is an alternative investment. They are yet to devise or reveal a mechanism for strategic allocation.

Wells Fargo said that this is going to be available for qualified investors around mid-June which is quite interesting. This was said by Darrell Cronk who is the president of Wells Fargo Investment Institute. It’s ironic that the bank is making it available to a specific class when in essence the underlying asset is available to anyone. That is why it is loved and so popular amongst the population because there is so much inclusion with crypto.