Bank Of America Backs 4% Crypto Allocation For Clients

"Bank of America is urging its wealth management clients to consider placing a small but deliberate slice of their portfolios into digital assets. The bank now recommends a 1% to 4% crypto allocation, marking a significant shift in how one of the country's largest financial institutions approaches Bitcoin exposure. The guidance applies across Merrill, Bank of America Private Bank, and Merrill Edge, according to a Yahoo Finance report."

"The change takes effect Jan. 5, when the bank's chief investment office begins formal research coverage of four bitcoin ETFs. Those funds include Bitwise's BITB, Fidelity's FBTC, Grayscale's Bitcoin Mini Trust, and BlackRock's IBIT. Chris Hyzy, chief investment officer for Bank of America Private Bank, said the bank is taking a measured approach. A small allocation may suit investors seeking exposure to thematic innovation, he said, but only through regulated products. He also emphasized the need for clear expectations about volatility."

"The bank said the lower end of the 1% to 4% range may better fit conservative clients, while the higher end may appeal to those with stronger risk tolerance. Bitcoin is getting more and more appealing to wealthy investors The policy change reflects rising interest in Bitcoin from wealthy clients. Nancy Fahmy, head of the bank's investment solutions group, said demand has grown noticeably over the past year. Many clients previously turned to platforms outside the bank to gain exposure to Bitcoin ETFs."

Bank of America recommends a 1% to 4% crypto allocation for wealth management clients across Merrill, Bank of America Private Bank, and Merrill Edge. The guidance enables advisers to proactively recommend crypto and unlocks broader adviser access to digital-asset conversations. Formal research coverage of four bitcoin ETFs begins Jan. 5, covering Bitwise BITB, Fidelity FBTC, Grayscale Bitcoin Mini Trust, and BlackRock IBIT. The bank emphasizes using regulated products, warns about volatility, and suggests lower allocations for conservative investors and higher allocations for those with stronger risk tolerance. Demand for Bitcoin among wealthy clients has increased, with some previously seeking exposure outside the bank.

Read at Bitcoin Magazine