Wells Fargo will soon offer “a professionally managed solution” for cryptocurrency to clients. “We think 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,” said the president of Wells Fargo Investment Institute.
Wells Fargo Getting Into Crypto
Darrell Cronk, the president of Wells Fargo Investment Institute, a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, revealed his team’s crypto plans to the Insider in an interview published Wednesday.
He said that his firm is in the final stages of adding an actively managed cryptocurrency investment strategy to its platform for qualified clients. The crypto research and due diligence effort are being led by Greg Maddox, head of Global Manager Research, a division of Wells Fargo Investment Institute.
Emphasizing that the firm has been searching for “a professionally managed solution” for months, Cronk expects the strategy to be added to the platform around mid-June.
He also explained why Wells Fargo has changed its mind about offering a crypto service to its clients. The firm was previously concerned about the lack of regulatory clarity around cryptocurrency. John LaForge, head of real asset strategy for Wells Fargo Investment Institute, said in December that his team did not have an official recommendation on cryptocurrency and clients could not hold crypto at Wells Fargo. However, Cronk clarified:
We think 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.
Nonetheless, he cautioned that cryptocurrency is an evolving asset class that needs deeper due diligence. “So we’re still not suggesting in our work that it is its own dedicated asset class with a strategic allocation to it in every portfolio,” he emphasized. “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.”
Wells Fargo’s new crypto investment strategy is expected to be limited to qualified investors. Cronk explained that there are still “plenty of risks” associated with cryptocurrency investing, including operational, regulatory, and technology failures. However, he concluded:
There’s a whole element of consumer protections and regulations that have to still evolve with the changing landscape. So we’re not without risk, it’s just that we think there can be a viable investable option for those clients who show an interest.
'Bitcoin Is Dead'- Crypto Market Carnage Invokes Haters and BTC Obituaries
Digital currency markets have shed billions in value over the past week and during the market carnage, bitcoin haters have come out in flocks. Moreover, according to numerous crypto skeptics, bitcoin has officially died 21 times this year and this week’s downturn is sure to provide another eulogy.
Bitcoin Haters Step Out to Troll Crypto Proponents
On April 14, 2021, the price of bitcoin (BTC) tapped an all-time price high at $64,895 per unit, and then slid to a low of $30,066 a touch over a month later on May 19. That’s a percentage loss of 53% down from the high.
BTC has regained some of the losses it has taken on Wednesday morning, but is still down quite a bit from yesterday’s price highs. Market trauma like this causes numerous bitcoin haters to come out of the woodwork, as many feel the need to explain to the public that crypto is nothing more than speculative ‘tulip mania.’
On Wednesday, the bitcoin hater Nouriel Roubini tweeted about BTC after the prices plunged to new 2021 lows.
“Bitcoin falls more than 40% from its peak in less than one month. Which institutional investors are reckless enough to invest in such a risky and volatile pseudo-asset with no intrinsic value? Roubini asked. “They should be fired on the spot if undertaking such a reckless speculative gamble,” the skeptic further added.
'Bitcoin Is Dead'- Crypto Market Carnage Invokes Haters and BTC Obituaries
The gold bug and economist Peter Schiff believes that this is a full-fledged “bitcoin bear market.”
“The most bearish aspect of the Bitcoin bear market is that it’s been slow and steady, at least by Bitcoin standards,” Schiff’s tweet noted on Wednesday. “So far there hasn’t been a crash that would indicate capitulation. Instead, Bitcoin bulls remain steadfast, their faith unshaken as they confidently buy every dip.”
'Bitcoin Is Dead'- Crypto Market Carnage Invokes Haters and BTC Obituaries
Meanwhile, droves of BTC supporters are unshaken it seems, and many believe the bad times will soon be over. “For those new to crypto, please let me introduce our old friend honey badger. Honey badger don’t care,” Watchdog Capital’s Bruce Fenton said on Wednesday.
“Not concerned,” the host of the Youtube show ‘Colin Talks Crypto’ stressed. “Bull run is still on. I sold a small bit of BTC and ETH yesterday. Going to re-buy lower,” the Youtuber added on Wednesday.
2021 Has Seen Approximately 21 Bitcoin Obituaries
2021 has seen all-time highs (ATH) as far as a number of crypto assets are concerned and BTC spiked 2x higher than 2017’s previous ATH. However, 2021 has seen a number of “Bitcoin Obituary Stats,” as approximately 21 deaths have been recorded on the web portal 99bitcoins.com.
BTC had a recent obituary published on May 18, 2021, which was written by The Independent author Tim Mullaney. The death sentence called “The Harsh Truth About Crypto” explains why Mullaney truly believes BTC is “basically nothing.” The Independent author adds:
And that’s why the world’s most-traded cryptocurrency is worth basically nothing… Don’t even start on the notion that bitcoin is a currency or a store of value, or a hedge against inflation. The unstable price chart belies all of those notions, as does exposure to bitcoin advocates, none of whom will be running the Federal Reserve soon.
Mullaney’s opinion highlights that bitcoin isn’t much of a ‘revolution’ unless someone can tell him what the “revolutionary technology does in the real world.” The author concludes that “Amusing Elon doesn’t count. For crypto, t’aint much.”
In addition to Mullaney’s opinion editorial, there’s 20 more obituaries that stress bitcoin is sitting in a casket while this article is written. At the time of publication, at 11:30 a.m. (EST) on Wednesday, bitcoin (BTC) is exchanging hands for $36,979 per unit.
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