Bank of America has sent an important signal to Wall Street – crypto is no longer a fringe idea. The banking behemoth is advising its wealth management customers to allocate 1% to 4% of their portfolio to digital assets in a daring change to its investment recommendations.
It suggesting that cryptocurrency may now transition from niche speculation to strategic necessity.
This guideline applies across Bank of America’s Merrill, Private Bank, and Merrill Edge platforms. For the first time, its 15,000+ wealth advisers will be allowed to actively promote bitcoin exposure rather than just reply to client queries.
Starting January 5, Bank of America’s investment office will formally cover four main bitcoin ETFs, Bitwise (BITB), Fidelity (FBTC), Grayscale’s Mini Trust (BTC), and BlackRock’s iShares Bitcoin Trust (IBIT).
The bank’s Chief Investment Officer, Chris Hyzy, emphasised that this allocation suits clients who desire innovation and understand volatility. “A modest allocation of 1% to 4% could be appropriate,” he said, underlining the need of regulated products and risk awareness.
Investors who are risk-averse might start at around 1%, while those who are cautious might go higher.
The action follows a similar signal from Morgan Stanley, which advocated a 2%–4% allocation, reflecting growing institutional acceptability.
According to analysts, this change has the potential to unlock billions of dollars in new funding and increase the amount of cryptocurrency in mainstream portfolios.
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