Bank of America Encourages Modest Crypto Allocation for Wealth Clients

Bank of America Sends New Signal to Wealth Clients

Bank of America has announced the integration of digital asset allocation recommendations into its wealth management services, and for the first time is providing explicit guidance on portfolio allocation. Clients of Merrill, Bank of America Private Bank, and Merrill Edge now receive official advice to allocate 1% to 4% of their portfolios to digital assets. This offers a pathway for clients to participate in innovative markets.

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This guidance is primarily aimed at clients highly attuned to technology trends and comfortable with increased market volatility.

Bitcoin ETFs Now Included in Official Investment Coverage

Effective January 5, Bank of America’s investment strategy team will officially track and cover four Bitcoin ETFs:

• Bitwise Bitcoin ETF (BITB)
• Fidelity Wise Origin Bitcoin Fund (FBTC)
• Grayscale Bitcoin Mini Trust (BTC)
• BlackRock iShares Bitcoin Trust (IBIT)

Bank of America notes that conservative investors may start at the lower end of the recommended range, while those with higher risk tolerance can consider larger allocations.

Previously Unable to Proactively Recommend, Shifting Strategy Amid Increasing Demand

Previously, Bank of America’s wealth clients needed to request access to crypto products, as advisors were not permitted to recommend them proactively. As demand soars, Bank of America states this policy update reflects growing market interest in digital assets. The head of investment solutions further notes that client demand for regulated crypto investment products is accelerating rapidly.

Major Financial Institutions Drive the Trend Toward Crypto Allocations

Bank of America is not alone among traditional financial giants revising their strategies regarding digital assets. In recent months, several Wall Street institutions have issued new digital asset allocation guidelines:

• Morgan Stanley: Advises allocating 2%–4% to digital assets.
• BlackRock: Suggests a 1%–2% Bitcoin allocation.
• Fidelity: Recommends 2%–5%, with younger investors allowed up to 7.5%.
• Vanguard: Plans to launch select crypto ETFs and funds.

Additionally, Morgan Stanley, Schwab, Fidelity, and JPMorgan permit clients to purchase select crypto ETFs.

Policy Changes Position Crypto as a Central Component of Finance

Following the start of the Trump administration, US crypto policy shifted rapidly. Previous restrictions on banks’ involvement in crypto were lifted, providing clearer regulatory direction and encouraging more traditional financial institutions to enter the sector.

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Summary

As leading financial institutions continue to adapt their strategies and embrace digital assets, Bank of America’s latest guidance marks a pivotal moment for traditional wealth management. Digital assets are no longer just an experimental allocation—they are becoming part of mainstream investment portfolios. With clearer regulatory frameworks and a broader range of financial products, digital assets are set to play an increasingly vital role in global financial markets, offering investors a more developed and accessible market environment.