Bank of America is taking a major step toward integrating digital assets into mainstream wealth management. For the first time, the bank is advising its wealth clients that a small allocation to cryptocurrency could be appropriate, recommending between 1% and 4% of a portfolio depending on an investor’s appetite for volatility. The new guidance applies across Merrill, the Bank of America Private Bank, and Merrill Edge, marking a shift from a long-standing policy that prevented advisers from proactively suggesting crypto products.
Chris Hyzy, Chief Investment Officer for the Private Bank, described the move as suitable for clients who are interested in emerging technologies and comfortable with above-average market swings. He emphasised that any allocation should be made through regulated vehicles and supported by a clear understanding of both the risks and potential returns. Previously, clients could only gain exposure to digital assets if they specifically requested it, leaving advisers unable to initiate the conversation.
The shift comes in response to growing demand from clients, according to Nancy Fahmy, who leads the Investment Solutions Group. Starting January 5, the bank will begin covering four bitcoin exchange-traded funds, all of which advisers will be able to recommend. The list includes the Bitwise Bitcoin ETF, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and BlackRock’s iShares Bitcoin Trust. These products offer investors a regulated way to access Bitcoin’s performance without having to deal with custody, private keys, or crypto exchanges.
Bank of America’s updated stance aligns it with a broader trend on Wall Street. Other major institutions have already begun outlining how crypto can fit into a diversified portfolio. Morgan Stanley has suggested a 2–4% allocation, BlackRock has floated 1–2%, and Fidelity has gone even higher for younger investors, recommending between 2% and 5% and potentially up to 7.5% for those under 30. Vanguard, which historically avoided crypto, has recently opened the door to select ETFs and mutual funds tracking the sector. Meanwhile, large retail and institutional players such as Charles Schwab, JPMorgan Chase, and SoFi are expanding access in various ways.
Much of this momentum is driven by shifting regulatory conditions. The Trump administration reversed several restrictions that were implemented under President Biden, giving banks more room to explore crypto-related services such as custody and trading. Still, the absence of a comprehensive federal framework means many institutions remain cautious while waiting for Congress to establish clearer rules.
The bank’s timing also coincides with continued turbulence in the crypto market. Bitcoin surged above $126,000 in early October before retreating to about $85,000 this week, underscoring why advisers continue to urge modest allocations. Despite the volatility, Bank of America’s new guidance signals that digital assets are increasingly being treated not as an experimental investment but as a small yet legitimate component of modern portfolios.
