Wells Fargo, bank in the USA, entered the cryptocurrency market

Wells Fargo, the third largest bank in the USA, has started to offer its wealthy customers the opportunity to invest in cryptocurrency market. According to the news of Insider, this service of the banking institution has been activated recently.

Back in May, we reported that Wells Fargo was entering the cryptocurrency space. The financial services company, which has $2 trillion in assets under its management, has announced that they will implement an actively managed crypto money strategy on its platform for its investors. The company informed that the works were in the final stages at that time.

Darrell Cronk, President of the Wells Fargo Investment Institute, said, “We believe now is the period of development, evolution and maturation required for cryptocurrencies to be viable investment assets. An environment where 9,000 cryptocurrencies generate more than $2 trillion in value clearly shows us the breadth and depth of the market. However, I still see cryptocurrencies as an alternative investment rather than a strategic savings.” says.

Wells Fargo entering the cryptocurrency market believes bitcoin will rise

Cronk believes that the price of Bitcoin will rise in the long run. The bank manager said, “When you reduce the supply of anything, the price has to go up even if the demand stays the same. I think it will naturally increase over time as people become more familiar and these entities become more common. We’ve seen this happen consistently over the last decade, but it accelerated during the pandemic because platforms have become more digital.” he speaks.

Wells Fargo’s service is provided to qualified investors with annual gross income of more than $200,000 or net worth of more than $1 million. Also, as the SEC has not yet approved a Bitcoin exchange-traded fund, the investment is only offered through private placement. Cronk says these restrictions are imposed due to regulatory, technology failures, operational risks, and other risks to investing in cryptocurrencies.

The official entry of Wells Fargo into the crypto money industry also had an upside effect on the Bitcoin price. The biggest crypto money with its market value has approached from $ 39 thousand to $ 42 thousand. Currently, Bitcoin is trading at $ 41,609.

SEE ALSO;Digital Banks and Cryptocurrencies of Countries

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *