Bank of America Allows Wealth Clients to Invest in Bitcoin ETFs With Up to 4% Portfolio Allocation

TLDR

• Bank of America wealth management clients can now allocate 1-4% of portfolios to crypto through four bitcoin ETFs starting January 5
• The bank will cover Bitwise, Fidelity, Grayscale, and BlackRock bitcoin ETFs through its Merrill and Private Bank platforms
• Previously, wealthy clients could only access crypto products upon request without adviser recommendations
• Other major banks like Morgan Stanley recommend 2-4% allocation while BlackRock suggests 1-2% and Fidelity recommends 2-5%
• Bitcoin has dropped roughly one-third from its October high above $126,000 to around $85,000 as of early December

Bank of America has announced that its wealth management clients can now invest in crypto through four bitcoin exchange-traded funds. The bank recommends allocating between 1% and 4% of portfolios to digital assets.

The new guidance applies to clients using Merrill, Bank of America Private Bank, and Merrill Edge platforms. Starting January 5, investment strategists will begin covering four bitcoin ETFs.

The covered products include the Bitwise Bitcoin ETF, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and BlackRock’s iShares Bitcoin Trust. These ETFs will be available through the bank’s network of over 15,000 wealth advisers.

Chris Hyzy, chief investment officer at Bank of America Private Bank, said the allocation is appropriate for investors comfortable with elevated volatility. The guidance emphasizes regulated vehicles and a clear understanding of risks.

Before this change, wealthy clients could only access crypto products upon request. Advisers could not recommend crypto exposure directly to clients.

Nancy Fahmy, head of Bank of America’s investment solutions group, said the update reflects growing client demand for digital assets. The move represents a shift in how traditional banks approach cryptocurrency investments.

Following Industry Trend

Bank of America joins other major financial institutions offering crypto investment guidance. Morgan Stanley’s global investment committee suggested a 2-4% portfolio allocation to crypto in October.

BlackRock recommended a 1-2% bitcoin allocation at the start of 2025. Fidelity Investments suggested 2-5% in March 2024, with 7.5% for investors age 30 and below.

Vanguard will begin allowing some crypto ETFs and mutual funds on its platform starting December 3. Morgan Stanley, Charles Schwab, Fidelity Investments, and JPMorgan Chase already permit customers to invest in certain crypto ETFs.

Several banks are expanding beyond ETF offerings. Fintech bank SoFi began rolling out direct crypto trading to retail customers a month ago.

Charles Schwab, Morgan Stanley, and regional lender PNC are expected to offer direct crypto trading soon. Many US banks are waiting for Congress to pass legislation that would establish a regulatory framework for the crypto market.

Regulatory Environment Changes

The Trump administration has reversed several Biden-era crypto policies this year. Regulators removed guidance barriers that prevented banks from offering various crypto activities.

JPMorgan Chase’s wealth management division has not issued official crypto guidance to its 5,900 advisers. However, the bank has allowed Chase credit card customers to fund accounts with crypto exchange Coinbase Global since fall.

The regulatory shift has turned many Wall Street firms and investors bullish on crypto. However, the crypto market has experienced volatility in recent weeks.

Bitcoin reached an all-time high above $126,000 in early October. As of early December, the price has fallen roughly one-third to around $85,000.

Year to date, bitcoin is down about 10% while the S&P 500 is up over 15% this year.

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