Bank of America Greenlights 1–4% Bitcoin Exposure Plan

• Bank of America (BOA) will enable its advisors to invest small portions of the high-net-worth accounts of their clients in BTC.
• BOA will focus on regulated ETFs, which are low-risk and manageable.
• The recent inflows in BTC ETF products are also further evidence that the interest of institutions in cryptocurrency is becoming more pronounced.

Starting in January, the BOA will enable advisors to invest 1-4% of their clients in Bitcoin (BTC), providing regulated exposure to crypto.

The New Law Of Investing In BTC

The update on X was posted by Hunter Horsley, the CEO of Bitwise. He wrote that BOA has included the Bitwise Bitcoin ETF (BITB) on its approved list of products. Horsely added that this is an important move towards crypto adoption in the mainstream.

Chief Investment Officer Chris Hyzy explained the move. He said that BOA chose regulated ETFs since it wanted to maintain prudent allocation in managing risk. He emphasized that BTC has some peculiarities that should be learned.

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New Crypto Exposure for Affluent Clients

The approved ETFs will be made available to clients beginning on January 5. The products are BITB, FBTC, BTC, and IBIT, each includes custody, monitoring, and transparent charges.

Advisors are now able to add Bitcoin to their portfolio strategies and can provide rich households with a regulated crypto exposure.

Other top banks may also follow the lead of the BOA and implement a similar crypto strategy. Bitcoin funds have been receiving steady inflows, and institutions are still investing in Bitcoin using regulated vehicles.

High ETF Demand Shows Increased Investor Interest 

This trend is reinforced by new ETF data. Data at SoSoValue has indicated massive funds flow into the top Bitcoin ETFs on December 2.

BlackRock’s IBIT had the biggest inflow at about $120 million, while the Fidelity FBTC recorded almost $22 million. Bitwise’s BITB attracted $7.44 million in new demand.

Conversely, ARKB by Ark 21Shares incurred a drastic withdrawal of $90.94 million. Other issuers such as Franklin, Valkyrie, and VanEck recorded zero flows.

Hence, the total net inflows in all spot BTC ETFs in the U.S. for December 2 amounted to almost $59 million. This influx follows a rise in high-volume activity at the end of November and since the start of December.

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