UBS Group, Switzerland’s largest investment bank, is planning to offer its affluent clients exposure to cryptocurrencies, to keep up with client demand.
According to a report by BNN Bloomberg, the bank is exploring several alternatives for offering digital assets. To reduce client risk, the investment opportunities would be restricted to a very small portion of a client’s total wealth. This is largely due to concerns over the volatility of the crypto market.
Last month, the bank invested in a $65 million fundraiser for ConsenSys, a software development firm that builds crypto-related infrastructure.
UBS Group AG, with $1.1 trillion of invested assets, plans to offer its wealthy clients exposure to #bitcoin
— Documenting Bitcoin 📄 (@DocumentingBTC) May 10, 2021
Sources familiar with the matter revealed plans that investment options included investments via third-party investment vehicles. Said sources agreed to speak under the condition of anonymity, due to the private nature of the plans.
It appears that the investment bank is concerned that it may lose clients to its rivals if it doesn’t offer crypto investments to its wealthy clients. Several other banking giants have also changed their tune, warming up to cryptocurrencies, given the mammoth returns the crypto market has been boasting over the past few months. Goldman Sachs, Morgan Stanley, and The Bank of New York Mellon, have all opted to provide crypto services to their affluent clients. We expect more financial institutions are sure to follow suit.
Feature image by Ivan Radic from flickr