Wells Fargo Unveils Crypto Strategy After All

Wells Fargo joins Citigroup, Goldman Sachs, BNY Mellon and JPMorgan as one of the big names in finance expanding into digital asset investment vehicles and services.


Source: Shutterstock


key takeaways

key takeaways

  • Actively managed crypto trading to be available to qualified investors in mid-June
  • In December, the bank said clients could not hold crypto, but times have changed

Wells Fargo Investment Institute, which went public with its new crypto strategy today, one of the most volatile days for cryptocurrencies in the recent months. 

According to an Insider interview with Wells Fargo Investment Institute president, Darrell Cronk, the bank will offer a “professionally managed solution” to its wealthy clients in mid-June.

The bank’s crypto strategy research is led by the institute’s global manager research team, which is headed by Greg Maddox, according to the article which was posted today.

A viable investment asset

In a special report on the investment rationale for cryptocurrencies, the bank said, “We believe that cryptocurrencies have evolved into a viable investment asset. There are over 9,000 cryptocurrencies, with $2.4 trillion in capitalization (as of May 7, 2021), and this depth and breadth allow additional analysis of their trends.1 Short-term factors suggest further deepening of the market. We believe long-term supply and demand trends support further industry growth, the potential for further compression in price volatility, and a possible role as portfolio diversifiers.”

Today’s news is directly opposite to what John LaForge, head of real asset strategy for Wells Fargo Investment Institute, told media attending a 2021 outlook briefing in December. Then the bank said its analysts did not have a crypto recommendation and that clients could not hold crypto at Wells Fargo.

Wells Fargo joins Citigroup, Goldman Sachs, BNY Mellon and JPMorgan as one of the big names in finance that have recently announced plans to expand into digital asset investment vehicles and services.

Timing is everything

However, the bank’s news dropped on one of the most volatile days and weeks for crypto currencies in recent months. Some attribute the plummet to Elon Musk’s u-turn on allowing bitcoin for Tesla purchases last week.

Bitcoin plummeted as much as 30% to around $30,000 Wednesday before recovering around 10%. Ethereum plummeted 19% while Dogecoin fell 20% to 38 cents.

As traders rushed to sell, Coinbase and Binance experienced outages in the US morning trading hours — with Coinbase being down for one and a half hours.

The largest digital currency was trading at around $38,000 at time of publication, according to CoinGecko.


upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone


Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.



Bitcoin price predictions are meaningless, so let’s expend our prediction energy on something that actually matters


A new complaint against Elon Musk and Tesla alleges that Musk manipulated both bitcoin and dogecoin


Kenya’s central bank doesn’t seem enamored by the idea of a CBDC but hasn’t slammed the door shut yet


Both Ethereum and Solana have enjoyed vibrant DeFi environments, but this has not yet been the case for Cosmos


As Japan takes important step forward on stablecoins, industry participants say, proposed US laws around such crypto assets remain in flux


Stablecoins offer global financial access and on-chain transactions without limitations, while FedNow falls short in terms of utility, global reach and inclusivity