Wells Fargo To Offer An Active Crypto Investment Strategy For Clients

Financial services giant Wells Fargo & Co. WFC is in the final stages of implementing an actively managed crypto investment strategy for its customers.

What Happened: According to Business Insider, Well Fargo's investment institute president Darrell Cronk said that the firm is in the final stages of adding a crypto strategy for wealthy clients.

The financial services giant has been reportedly looking for "a professionally managed solution" for months and is now concluding the final stages of the manager research and due diligence process.

The strategy will probably see the light of the day around mid-June.

Wells Fargo Wealth & Investment Management – which includes Wells Fargo Private Bank, Abbot Downing, and Wells Fargo Advisors — manages nearly $2 trillion in assets and is one of the biggest asset managers in the United States.

Cronk explained that the reason why the institutions decided to launch a crypto product is that "the cryptocurrency space has just kind of hit an evolution and maturation of its development that allows it now to be a viable investable asset."

At the same time, Cronk admitted that cryptocurrency is still a rapidly evolving market requiring deep due diligence and to be regarded as an "alternative investment" and not a "strategic allocation."

Consequently, he said that the company is not suggesting that digital assets deserve being considered as "its own dedicated asset class with a strategic allocation to it in every portfolio." 

See also: Goldman Sachs Director Allegedly Leaves The Bank After Making Fortune From Dogecoin: Report

"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," he added.

Price Action: Wells Fargo shares were trading at $46.86, up 0.064%, at press time.

Bitcoin lost around 30% in price over the past 24-hours, and was trading at $31,335.