Bank of America Opens Wealth Portfolios to Crypto

BofA will allow 1–4% crypto allocations and let advisers proactively recommend four major spot Bitcoin ETFs starting Jan 2026.

The policy shifts Merrill and Private Bank clients from request-only crypto discussions to full adviser-led recommendations.

Move aligns BofA with peers like JPMorgan and Morgan Stanley as major banks expand crypto access and institutional products.

Bank of America will allow wealth management clients to allocate 1% to 4% of portfolios to crypto starting January 5, 2026. The policy change ends restrictions that previously prevented 15,000 advisers from proactively recommending Bitcoin ETFs. The move focuses initially on four major spot Bitcoin ETFs: BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and Grayscale’s BTC.

Guidance from BofA Wealth Management

Chris Hyzy, chief investment officer at Bank of America Private Bank, outlined allocation guidance. He noted that investors with higher risk tolerance may consider the upper 4% range, while more conservative clients may start at 1%

Hyzy emphasized that a modest allocation suits those comfortable with volatility and thematic innovation. The update applies across Merrill, Bank of America Private Bank, and Merrill Edge platforms.

Previously, advisers could only discuss crypto products upon client request. Starting January, advisers can actively recommend crypto allocations. According to Yahoo Finance, this policy aligns Bank of America with other institutions like BlackRock and Morgan Stanley. The change follows Vanguard’s reversal of its crypto ETF stance, allowing clients access to similar digital asset products.

Bitcoin ETF Coverage and Institutional Context

The CIO team at BofA will begin coverage of four Bitcoin ETFs on January 5. Bitwise Bitcoin ETF (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Mini Trust (BTC), and BlackRock iShares Bitcoin Trust (IBIT) will be included. The coverage allows advisers to recommend specific ETFs rather than waiting for client-initiated inquiries.

Bank of America’s move follows broader institutional adoption trends. JPMorgan launched its blockchain-powered JPM Coin for institutional clients and filed a structured product linked to BlackRock’s IBIT

Citi plans to offer crypto custody by 2026, while Morgan Stanley expanded crypto access to all wealth management clients, removing prior asset thresholds. These developments indicate growing acceptance of digital assets in major U.S. banks.

Alignment with Industry Trends

The change reflects Bank of America’s ongoing interest in crypto, including its February plan to launch a stablecoin once regulations permit, according to CEO Brian Moynihan. By allowing portfolio allocations, BofA joins peers in integrating cryptocurrency into traditional wealth management frameworks, enabling advisers to provide active guidance within regulatory guidelines.

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