Wells Fargo Investment Research has provided neutral guidance on digital assets within asset allocation strategies, suggesting that growth and growth income portfolios consider a 2% to 3% allocation. Reasons include long-term growth potential and the diversification benefits from low correlation with traditional assets, while noting the dilution of dollar purchasing power as a backdrop for allocation.

The firm places digital assets within a framework of physical assets, preferring exposure through Bitcoin and Ethereum spot ETFs, and plans to elevate digital assets from a sector under commodities to an independent asset class. The public research also emphasizes that from early 2013 to August 2026, Bitcoin rose from about $100 to over $100,000 by the end of 2024, peaking above $126,000 in October 2025, and closing below $80,000 at the end of August, while the dollar's purchasing power has cumulatively lost about 39% during the same period. Although it has outperformed inflation in the long term, its price is not a stable inflation hedge due to significant drawdowns.

The bank's own holdings are asymmetrical compared to retail channels. Regulatory documents show it increased its holdings in Strategy stocks by about 125% to nearly 726,000 shares, while reducing some shares in BlackRock's Bitcoin spot ETF and issuing options; the portfolio also includes Ethereum ETFs, Solana-related products, and BitMine. The retail side still does not directly buy or hold coins, with customers primarily trading IBIT, FBTC, and other spot ETFs through WellsTrade. BlackRock recommends about 1% to 2% for a 60/40 portfolio, Bank of America about 1% to 4%, and Morgan Stanley's aggressive portfolio about 3% to 4%.

The 2% to 3% allocation is framed as an initial position within a risk budget, rather than a bet on unilateral depreciation. The buyers are advisory clients who accept volatility and aim for growth; the sellers are the issuers of spot ETFs and market makers. Funds are carved out from stock and bond allocations into ETF subscriptions, which are then mapped to Bitcoin inventories. Beneficiaries are ETFs that have been approved for advisory models; those under pressure are long-duration government bonds and some commodity positions that are crowded out by the same budget.

Source: Public Information