Bank of America has now recommended that wealth management clients allocate between 1% and 4% of their portfolios to digital assets, marking a significant endorsement of cryptocurrency investments from one of America's largest financial institutions.

BofA’s New Crypto Investment Guidelines

The second-largest U.S. bank will begin covering four bitcoin exchange-traded funds starting January 5, 2026. The recommendation applies to clients across Merrill, Bank of America Private Bank, and Merrill Edge platforms, expanding crypto access for the institution's network of over 15,000 wealth advisers.

Chris Hyzy, chief investment officer at Bank of America Private Bank, emphasized a measured approach targeting investors comfortable with elevated volatility. The guidance stresses regulated investment vehicles and risk awareness, with conservative investors suited to the lower end of the range and those with higher risk tolerance toward the upper end.

Covered Bitcoin ETFs

Beginning January 5, Bank of America's CIO will cover four bitcoin ETFs: Bitwise’s Bitcoin ETF (BITB), Fidelity's Wise Origin Bitcoin Fund (FBTC), Grayscale's Bitcoin Mini Trust (BTC), and BlackRock's iShares Bitcoin Trust (IBIT).

Crucially, prior to the change, the bank's advisers could only provide access to these products upon client request. The new policy allows proactive recommendations as part of comprehensive wealth management strategies, reflecting growing client demand for digital asset access.

Industry-Wide Crypto Adoption

Bank of America's move aligns with broader institutional embrace of digital assets. Only recently, Morgan Stanley recommended 2% to 4% portfolio allocations to crypto. BlackRock advocated 1% to 2% Bitcoin allocations at the end of 2024, while Fidelity Investments has since suggested 2% to 5%.

In December 2025, Vanguard began allowing crypto ETFs on its platform, joining Morgan Stanley, Charles Schwab, Fidelity, and JPMorgan Chase in offering access. Several banks, including SoFi, Charles Schwab, Morgan Stanley, and PNC, are also moving toward direct crypto trading for customers.

JPMorgan Chase has accelerated its crypto initiatives this year, allowing Chase credit card customers to fund Coinbase accounts, though its wealth management division has not yet issued official crypto guidance to advisers. These moves are underscored by the bank’s own blockchain initiative, Kinexys.

Many banks await congressional legislation establishing a comprehensive regulatory framework before offering direct crypto trading and custody services.

Bank of America's Crypto Stance: Cautious but Ready

Bank of America's crypto endorsement represents a significant evolution from its historically cautious public posture. In July 2025, CEO Brian Moynihan confirmed the bank is exploring a dollar-pegged stablecoin offering, pending regulatory clarity. This followed passage of the GENIUS Act, the first comprehensive U.S. framework for regulating stablecoins.

Behind the scenes, the bank has built substantial blockchain expertise, holding nearly 7,000 patents, the most of any financial services company, with significant focus on blockchain and distributed ledger technology. The institution has also adopted infrastructure like the Paxos Settlement Service and stated it is ready to ‘come in hard on the transactional side’ once regulatory frameworks are established.

These initiatives seem to suggest Bank of America is positioning itself as a major player in digital assets despite maintaining a measured approach so far. The convergence of its patent portfolio, stablecoin plans, and wealth management guidance indicates strategic long-term commitment to blockchain technology and cryptocurrency markets.

Sources

• Yahoo Finance: Bank of America says its wealth management clients may put up to 4% of their portfolio in crypto
• Morgan Stanley: Does Crypto Have a Place in Your Portfolio?
• Blackrock: Sizing bitcoin in portfolios
• Fidelity: The case for bitcoin
• Bloomberg: Vanguard Will Now Allow Crypto ETFs on Its Platform
• Blockchain Council: Bank of America Plans Stablecoin Launch
• Bank of America: Crypto goes steady: Stablecoins
• Bank of America: Patent Data
• Paxos: Paxos Adds Bank of America, Coinbase Ventures, Founders Fund & FTX to Series D Funding Round

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