Bank of America Says Clients Should Put 1–4% Into Crypto — Here’s Why

Sean Williams
Bank of America

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  • Bank of America now recommends a 1–4% crypto allocation for wealth clients.
  • Advisers can recommend four bitcoin ETFs starting January 5.
  • Regulatory clarity and demand are pushing Wall Street deeper into digital assets.

Bank of America is making a significant shift in its wealth management strategy, advising clients for the first time to consider allocating a small portion of their portfolios to cryptocurrency. The bank now recommends a 1–4% exposure to digital assets, depending on an investor’s risk tolerance—marking a milestone in mainstream financial acceptance of crypto.

New Guidance Brings Crypto Into Regulated Wealth Portfolios

The updated guidance applies to clients of Merrill, Bank of America Private Bank, and Merrill Edge. Chris Hyzy, Chief Investment Officer of the Private Bank, said a “modest allocation” can make sense for investors who are comfortable with volatility and interested in innovation themes.

The change also removes earlier limitations. Until now, advisers were not allowed to proactively recommend crypto exposure unless clients brought it up themselves. Growing demand ultimately pushed the bank to revise its stance, according to Nancy Fahmy, who oversees investment solutions.

Advisers Will Recommend Bitcoin ETFs Starting in January

Beginning January 5, Bank of America advisers will be allowed to recommend four regulated bitcoin ETFs:

These products give clients indirect Bitcoin exposure through regulated channels, avoiding the complexities of holding or securing the asset directly. Conservative clients are urged to stay near the 1% level, while more risk-tolerant investors may consider up to 4%.

Also Read: Vanguard Reverses Course, Opens Door to Crypto ETFs After Months of Resistance

A Broader Wall Street Shift Toward Digital Assets

Bank of America’s decision mirrors moves across major financial institutions. Morgan Stanley, BlackRock, and Fidelity have all issued similar allocation frameworks. Vanguard is preparing to list crypto ETFs and mutual funds, signaling growing acceptance in traditional finance.

Regulatory developments are a key driver. Recent policy shifts under the Trump administration have loosened restrictions placed on banks during the Biden era, giving institutions more room to offer crypto trading, custody, and advisory services.

Crypto Remains Volatile—but Increasingly Hard to Ignore

Bitcoin’s price swings illustrate the risks. After topping $126,000 in October, the asset has pulled back sharply and is trading around $85,000. Despite these fluctuations, Bank of America’s updated guidance suggests crypto is no longer dismissed as a speculative outlier, but recognized as a small, strategic component of a diversified portfolio.

For many wealth clients, accessing crypto through regulated ETFs—and with adviser support—marks a meaningful step toward safer and more transparent participation in the digital asset market.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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