Bank of America now advises wealth management clients to consider a small allocation to the world’s largest cryptocurrency, Bitcoin.
Specifically, the bank now recommends a 1%–4% allocation for eligible investors across its wealth management platforms. This guidance applies to clients using Merrill, Bank of America Private Bank, and Merrill Edge.
Chris Hyzy, Chief Investment Officer at Bank of America Private Bank, emphasized that the recommendation targets investors interested in emerging investment themes and comfortable with market volatility.
“Clients who are more risk-averse should remain near the lower end of the allocation range, while those with higher tolerance may consider deeper exposure,” he said.
Four Bitcoin ETFs to Enter Official Coverage
To support the new approach, the bank’s strategists will begin formal coverage of four Bitcoin ETFs in January 2026. These include BlackRock iShares Bitcoin Trust (IBIT), Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Mini Trust (BTC).
This marks a significant departure from the previous policy. Under that policy, advisers could recommend such products only when clients explicitly requested them.
With more than 15,000 advisers now able to guide investors toward approved options, access to regulated crypto exposure will broaden significantly.
Nancy Fahmy, who leads the investment solutions group, said that the update reflects rising demand from high-net-worth clients seeking structured exposure to digital assets.
Industry Peers Move in the Same Direction
The announcement is consistent with a broader industry trend. In this context, major financial institutions are establishing comparable allocation ranges for both retail and high-net-worth investors.
For instance, Morgan Stanley suggested a 2%–4% allocation in the October note. Similarly, BlackRock presented a case for 1%–2% exposure at the start of 2025.
By contrast, Fidelity Investments recommended a higher range of 2%–5%, with even greater levels suggested for younger investors.
Meanwhile, Vanguard, historically cautious on crypto, is beginning to allow certain crypto ETFs and mutual funds on its platform. Other major firms, including Morgan Stanley, Schwab, Fidelity, and JPMorgan, already offer access to approved crypto ETFs. By doing so, they help broaden investor options across the industry.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
