Bank of America Opens the Door to Crypto Allocations for Wealth Clients

Bank of America will open up crypto allocations for its wealth clients from next year, providing a pathway for investors across Merrill, Bank of America Private Bank, and Merrill Edge to place between 1% and 4% of their portfolios into digital assets. 

This marks a shift from the previous arrangement, where access to crypto products was only provided when clients specifically asked for it, limiting the bank’s 15,000-plus advisers from initiating any conversations about the asset class.

The bank’s new guidance positions digital assets as an option for those prepared to handle not only thematic innovation but also considerable price volatility, with the lower end of the proposed allocation designed for conservative investors and the upper limit intended for clients willing to shoulder greater risk. 

Bank of America’s chief investment officer for the Private Bank stated that a 1%–4% exposure could be suitable for investors who understand the risks and opportunities associated with digital assets, emphasising the use of regulated products rather than unregulated trading approaches.

Beginning 5 January, the firm’s investment strategists will formally cover four spot Bitcoin ETFs – Bitwise’s BITB, Fidelity’s FBTC, Grayscale’s Bitcoin Mini Trust, and BlackRock’s IBIT – giving clients a selection of established vehicles that avoid direct token custody. These ETFs have been among the most heavily traded crypto-linked funds in the United States, offering institutions compliance-friendly exposure.

Related: First-Ever Chainlink ETF Set to Debut on NYSE This Week

Crypto Adoption Across Wall Street

The decision places Bank of America alongside several major financial institutions that have already adopted recommended allocation frameworks, including Morgan Stanley, BlackRock, zFidelity, and Vanguard, all of which have issued suggested crypto ranges in recent months. The broader industry has increasingly leaned into digital assets despite Bitcoin’s retreat from its peak above US$126,000 (AU$194,040) in early October to significantly lower levels, with the asset still down roughly 10% year-to-date according to recent market data.

With advisers now explicitly permitted to discuss crypto allocations, Bank of America’s stance shifts digital assets from a client-initiated exception to an endorsed component of wealth planning, potentially influencing portfolio construction across one of the largest advisory networks in the country.

Related: Vanguard Opens Crypto ETF Trading to 50 Million Clients

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