Bank of America Backs 1–4% Crypto Allocation, to Add Bitcoin ETFs
Bank of America will permit its wealth management clients to access spot Bitcoin exchange-traded funds and is advising a 1%–4% digital asset allocation, according to a statement shared with Yahoo Finance on Tuesday.
The guidance applies across Merrill, Bank of America Private Bank and Merrill Edge. The bank said a limited allocation may suit investors interested in thematic innovation and able to tolerate higher volatility.
Starting Jan. 5, clients will be able to trade four Bitcoin (BTC) ETFs on the platform: the Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC) and BlackRock’s iShares Bitcoin Trust (IBIT).
The change gives the bank’s most affluent clients direct access to Bitcoin ETFs, which previously were available by request only. In addition, more than 15,000 wealth advisers across the firm can now recommend regulated crypto investment vehicles.
Bank of America said its approach centers on regulated products, careful position sizing and a balanced assessment of potential opportunities and risks.
The announcement points to growing institutional demand for regulated digital asset exposure. It follows Vanguard—one of the world’s largest asset managers—enabling crypto ETF trading for its clients a day earlier, reversing its prior stance on digital asset ETFs.
Source: Eric Balchunas
Bank of America is the second-largest U.S. bank, with approximately $2.67 trillion in consolidated assets and more than 3,600 branches, according to Forbes.
BlackRock outlined early Bitcoin allocation guidelines
BlackRock, the world’s largest asset manager, recommended up to a 2% portfolio allocation to Bitcoin in a December 2024 report. The firm said a 1%–2% position is a reasonable range, offering a comparable share of overall portfolio risk to a typical allocation to the “magnificent 7” group of primarily mega-cap technology stocks.
The “magnificent 7” refers to Amazon, Apple, Microsoft, Alphabet, Tesla, Meta and Nvidia.
In June, Fidelity suggested a 2% to 5% Bitcoin allocation—small enough to limit downside in the event of a BTC drawdown, yet sufficient to capture potential upside as an inflation hedge.
In October, Morgan Stanley indicated a 2% to 4% crypto allocation for investors and financial advisers, underscoring a converging view among major financial institutions toward modest, risk-managed exposure to digital assets.
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