To meet the growing demand of its wealthy clients, top Swiss bank UBS is considering offering limited exposure to Bitcoin via several investment vehicles. The investors’ exposure will be restricted to protect them from the wild price action of Bitcoin and other digital assets.
UBS has been eyeing the crypto space for quite some time. Last month, the bank took part in a $65 million fundraising round for ConsenSys, a software engineering firm in the blockchain space.
The major Swiss investment is reportedly in the “early stages of planning” regarding its crypto offerings to wealthy investors, according to the report. However, UBS has not disclosed the exact investment instruments it has in mind for its clients.
Whatever the investment instruments the firm decides upon, they will only be available to wealthy clients, reveals a report. However, only a small portion of the clients’ total wealth will be exposed to digital assets, hence limiting overall exposure.
UBS Reveals Interest in DLT
According to UBS, it has been closely following the digital asset space and is more interested in the underlying technology, which is the distributed ledger technology or simply DLT.
The crypto market have witnessed huge institutional adoption this year, thus, heightening the mainstream’s acceptance of the technology. Many traditional institutions are now joining the crypto bandwagon due to the fear of missing out (FOMO). Moreover, many coins have had a meteoric rise this year.
Last month, JPMorgan announced its plan to roll out a Bitcoin fund for its private rich clients this summer, using NYDIG as its custody provider. This will allow their clients to buy and hold Bitcoin through funds without touching the asset itself.
Per a new report, the NYDIG is integrating with fintech expert Fidelity National Information Services to help American banks transition smoothly into the Bitcoin market. According to NYDIG’s head of bank solutions, Patrick Sells, banks are beginning to realize the need to provide crypto services to their clients.