Bank of America (BAC) says its wealth management clients should start thinking about getting some crypto exposure in their portfolios.
The firm is endorsing a 1%-4% allocation to digital assets for clients of its Merrill, Bank of America Private Bank, and Merrill Edge platforms. Its investment strategists will begin covering four bitcoin ETFs in January.
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” Chris Hyzy, chief investment officer at Bank of America Private Bank, said in a statement.
“Our guidance emphasizes regulated vehicles, thoughtful allocation, and a clear understanding of both the opportunities and risks.”
Starting Jan. 5, the firm’s CIO-covered bitcoin ETFs will include the Bitwise Bitcoin ETF (BITB), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale’s Bitcoin Mini Trust (BTC), and BlackRock’s iShares Bitcoin Trust (IBIT).
“The lower end of this range may be more appropriate for those with a conservative risk profile, while the higher end may suit investors with greater tolerance for overall portfolio risk,” Hyzy added.
Previously, Bank of America’s wealthy clients had access to the products only upon request, meaning the bank’s network of over 15,000 wealth advisers could not recommend crypto exposure, and many retail investors were left needing to look elsewhere for access.
“This update reflects growing client demand for access to digital assets,” added Nancy Fahmy, head of Bank of America’s investment solutions group.
Bank of America’s recommendation comes alongside a broad push into crypto from other big banks and asset managers.
In an early October note, Morgan Stanley’s global investment committee provided investors and financial advisers with allocation parameters suggesting 2%-4% of their portfolio should be in crypto, describing it as a “speculative but increasingly popular asset class that many investors, but not all, will seek to explore.”
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At the beginning of 2025, BlackRock put forth a case for investors to allocate 1%-2% of their portfolio to bitcoin. In March 2024, Fidelity Investments recommended a 2%-5% allocation (and 7.5% for investors age 30 and below).
On Monday, Bloomberg reported that Vanguard will begin allowing some crypto ETFs and mutual funds on its platform starting Tuesday.
Morgan Stanley (MS), Charles Schwab (SCHW), Fidelity Investments, and JPMorgan Chase (JPM) already allow all customers to invest in certain crypto ETFs.