January 5, 2026 – In a landmark shift for traditional finance, Bank of America has officially begun allowing its wealth advisors to recommend that clients allocate up to 4% of their portfolios to Bitcoin and other cryptocurrencies. This policy update, effective today, marks a significant evolution from the bank's previous stance, where crypto exposure was available only upon client request and primarily for high-net-worth individuals.
The recommendation targets clients across Merrill Lynch, Bank of America Private Bank, and Merrill Edge platforms. Advisors can now proactively suggest a 1% to 4% allocation in digital assets, with the lower end suited for conservative investors and the higher end for those comfortable with greater volatility and thematic innovation, according to Chris Hyzy, Chief Investment Officer at Bank of America Private Bank.
Starting today, the bank's investment strategists are providing formal coverage of four major spot Bitcoin ETFs: BlackRock's iShares Bitcoin Trust (IBIT), Fidelity's Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and Grayscale's Bitcoin Mini Trust (BTC). These regulated vehicles allow clients to gain exposure to Bitcoin's price movements without direct ownership of the cryptocurrency.
This move aligns Bank of America with other Wall Street giants embracing limited crypto exposure. For instance, Morgan Stanley suggested 2%-4% allocations earlier, while BlackRock and Fidelity have endorsed 1%-2% and 2%-5% ranges, respectively. The decision reflects growing client demand, improved regulatory clarity, and Bitcoin's emerging role as a portfolio diversifier and potential hedge against inflation.
As institutional adoption accelerates, even modest allocations across Bank of America's vast client base—serving over 70 million customers—could drive substantial inflows into the crypto market, further solidifying digital assets' place in mainstream investing.
