Wells Fargo Investment Institute, the wholly-owned subsidiary of the American banking giant, Wells Fargo has announced that it is close to offering an active cryptocurrency strategy for qualified clients as its research team approaches the final stages of unveiling the service.
In an interview with Business Insider today, Darrell Cronk, president of Wells Fargo Investment Institute, disclosed that the firm’s research arm has been evaluating the best strategy its clients would use in trading the asset classes.
Led by Well Fargo institute’s global manager research team, its new crypto strategy is expected to be unveiled on its platform by next month, the report added.
Cronk noted that the firm is delving into the service because it believes cryptocurrencies, in general, have reached a level of maturity, which makes them a “viable investment asset.”
Although the firm is convinced that the assets have reached a mature stage, Cronk added that crypto is still evolving and requires lots of research before investors can commit their funds to it.
Based on this, the asset classes should be considered as an alternative investment rather than “strategic allocation,” Cronk said.
“For those investors who qualify and have an interest, there’s some good academic and money management work to suggest that it can be a nice diversifier to portfolio holdings,” Cronk was quoted as saying.
Crypto Education is Necessary
The president said the firm has gotten quite a bit of interest from clients about the new offering.
However, there is more concern about educating investors about cryptocurrencies before they delve into the investments.
“[Cryptocurrency] is a complex topic and while investors are interested, it is important that they understand it for what it is,” Cronk added.
So far, the firm has made significant efforts to enlighten interested investors about the investments.
The global investment strategy team earlier published its first report on the rationale of cryptocurrencies, as educating investors remains a top priority for the firm.
In a similar scenario, multinational investment bank, Goldman Sachs, announced that it would roll out bitcoin investment vehicles for its wealthy clients a few months back.
