Bank of America Opens Crypto Door: Advisers Can Now Recommend Bitcoin ETFs With 1–4% Portfolio Allocation

What’s Going On

For years, many large U.S. banks kept strict internal restrictions on advising clients about cryptocurrencies — often only offering crypto-related products at the client’s request. That is now changing for Bank of America. Starting next year, advisers at BofA, its Private Bank division, and Merrill Edge will be able to formally recommend certain regulated crypto products, especially spot Bitcoin ETFs. 

Under the new guidelines:

• Clients who are comfortable with the high volatility of crypto markets may consider dedicating 1%–4% of their investment portfolios to digital assets. 
• The bank’s Chief Investment Office (CIO) will cover four major Bitcoin ETFs — including those from firms like Bitwise, Fidelity, Grayscale, and BlackRock — from January 2026 onward. 
• This move effectively ends a longstanding prohibition for thousands of advisers who previously couldn’t proactively recommend crypto exposure. 

In effect, Bank of America is bringing crypto from the fringes of finance into the mainstream — at least for clients and investors willing to accept the risks.

Why This Matters

Institutional Validation of Crypto Assets

Bank of America’s decision represents one of the largest traditional financial institutions formally embracing crypto as part of legitimate wealth-management strategies. This could encourage other banks and advisers to follow suit.

A Balanced Approach to Risk and Innovation

By capping crypto allocation to 1%–4%, BofA strikes a balance — acknowledging crypto’s volatile nature, but offering clients regulated entry via ETFs. For now, exposure is modest and controlled, rather than speculative.

Potential Shift in Investor Behavior

With easier access to regulated crypto exposure, more clients may view digital assets not as speculative “altcoins,” but as part of a diversified, long-term investment strategy. This could increase demand for crypto ETFs and deepen institutional liquidity in digital assets.

What to Watch Next

• How clients respond — whether more retail and high-net-worth individuals begin allocating small portions of their portfolios to crypto.
• Other major banks and wealth-management firms — whether they follow BofA’s lead or remain cautious.
• Regulatory environment — as banks expand crypto offerings, clarity in regulation and oversight will be critical to maintain trust.
• Market impact — increased institutional exposure could influence crypto prices, volatility, and adoption over time.