Bank of America now recommends allocating up to 4% in cryptocurrencies

Source: PortaldoBitcoin Original Title: Bank of America now recommends up to 4% allocation in cryptocurrencies Original Link: https://portaldobitcoin.uol.com.br/bank-of-america-passa-a-recomendar-ate-4-de-alocacao-em-criptomoedas/ Bank of America (BofA), the largest bank in the United States, has started recommending that its wealth management clients consider allocating between 1% and 4% of their portfolios to cryptocurrencies, a significant shift from the traditional stance of the financial sector.

According to the institution, this allocation range may be suitable for investors with a strong interest in innovation and a willingness to handle the high volatility characteristic of the cryptocurrency market. The guidance applies to clients of Merrill, Bank of America Private Bank, and Merrill Edge platforms.

BofA’s recommendation reflects a broader change in how large financial institutions are viewing digital assets. Although the bank still classifies cryptocurrencies as high-risk investments, it believes that within a diversified portfolio and with a small, controlled percentage, it is possible to incorporate them as part of a long-term strategy without compromising the solidity of the portfolio.

This move follows recent decisions by other Wall Street giants. In October, Morgan Stanley also began advising some of its clients to allocate up to 4% of their investments to cryptocurrencies, especially those with a more aggressive profile. The bank’s global investment committee described crypto assets as a speculative but increasingly popular asset class, and compared Bitcoin to a form of “digital gold.”

Experts interpret these recommendations as another sign of the legitimization of cryptocurrencies in the traditional financial market. While volatility remains a challenge, the prevailing view is that, with limited and well-structured exposure, crypto assets can contribute to diversification and offer differentiated return opportunities.

The fact that such traditional banks are starting to support this strategy marks an important shift in how the sector sees the role of cryptocurrencies in modern portfolios.