Bank of America’s Bold Call: Allocate 1-4% of Your Portfolio to Bitcoin

Wall Street's warming up to crypto—and the latest nod comes with a specific number attached.

Bank of America just told its clients to consider a slice of Bitcoin in their portfolios. Not a huge chunk, mind you. We're talking a strategic allocation between one and four percent. It's the kind of move that makes traditional finance raise an eyebrow while quietly checking its own balance sheet.

The Institutional Thaw

Forget the wild west narrative. This recommendation signals a deeper shift. When a major bank puts a percentage target on Bitcoin, it's not just speculation—it's portfolio strategy. They're framing it as a modern asset class, one that potentially zigzags when traditional markets zag.

Why That Specific Range?

The 1-4% band is a classic risk-management play. It's enough to matter if Bitcoin moonshots, but not enough to sink a portfolio if it stumbles. It’s the financial equivalent of dipping a toe in the water, not diving headfirst. For institutions and high-net-worth individuals, it’s a calculated entry point, a way to gain exposure without betting the farm.

A Nod to the New Guard

This isn't a full-throated endorsement of decentralized finance. It's a pragmatic, numbers-driven suggestion from one of the world's largest custodians of old money. They're acknowledging the demand, the performance, and the sheer market weight Bitcoin now commands. Ignoring it is becoming a harder position to justify—even for the suits.

The Fine Print & The Future

Let's be clear: this is advice for a specific client profile, with the risk tolerance and the long-term horizon to handle crypto's legendary volatility. It's not a buy signal for your grandma's retirement fund. But it is a landmark moment. A top-tier bank is providing a framework to own Bitcoin, not just talk about it.

One cynical finance jab? It's almost touching to see traditional finance finally craft a cautious, fee-friendly way to participate in an asset designed to bypass them entirely. The revolution might not be televised, but it will be neatly packaged into a 1-4% strategic allocation—with appropriate management fees, of course.

In brief

• Bank of America recommends a 1% to 4% crypto allocation for its wealthy clients through its Merrill and Private Bank platforms.
• Four Bitcoin ETFs will be available starting January 2026, including those from BlackRock, Fidelity, Grayscale, and Bitwise.
• More than 15,000 wealth management advisors will now be able to recommend crypto products, a first for the bank.
• This decision is part of a broader institutional movement following BlackRock, Fidelity, and Morgan Stanley.

A historic legitimization of Bitcoin by Wall Street

Bank of America has just crossed a symbolic milestone. Starting January 5, 2026, the bank will provide access to four Bitcoin ETFs through its Merrill, Bank of America Private Bank, and Merrill Edge platforms.

Clients will be able to invest in BlackRock’s iShares bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and Bitwise Bitcoin ETF.

“For investors highly interested in thematic innovation and comfortable with high volatility, a modest allocation of 1% to 4% in digital assets might be appropriate“, says Chris Hyzy, Chief Investment Officer at Bank of America. This range is not random: it reflects an emerging consensus among financial giants.

The change is all the more remarkable since the bank’s 15,000 wealth management advisors previously had no authorization to recommend crypto products. This restriction is now lifted, thereby paving the way for a controlled democratization of Bitcoin among ultra-wealthy clients.

With $2.67 trillion in consolidated assets and more than 3,600 branches, Bank of America thus joins the movement initiated by its competitors. Vanguard, the world’s second largest asset manager, recently authorized crypto ETF trading, reversing its restrictive stance. The domino effect is confirmed on Wall Street.

BlackRock paved the way, others follow

It was BlackRock that set the standards for this new allocation strategy. In December 2024, the asset management giant already recommended a 1% to 2% exposure to Bitcoin, comparable to the risk carried by the “magnificent seven” (Amazon, Apple, Microsoft, Alphabet, Tesla, Meta, and Nvidia). A bold comparison that hit the mark.

Fidelity followed suit in June with a recommendation of 2% to 5%, arguing that this range minimizes collapse risk while allowing protection against inflation.

Morgan Stanley followed in October with an allocation of 2% to 4%. Bank of America thus aligns itself with this emerging doctrine: measured exposure.

This convergence reveals a profound transformation in institutional views on Bitcoin. The argument is no longer about unbridled speculation, but about thoughtful diversification.

“Our recommendations emphasize regulated investment vehicles, thoughtful allocation, and a clear understanding of opportunities and risks“, Chris Hyzy clarifies.

The numbers speak for themselves. BlackRock’s IBIT ETF shows remarkable performance, with consistently positive net flows according to K33 Research. Fund holders recently broke even, erasing October 2025 losses thanks to Bitcoin surpassing $90,000.

In short, Bank of America’s entry into the crypto arena marks the end of an era of institutional mistrust. With a clear allocation recommendation and facilitated access to Bitcoin ETFs, the bank validates the model outlined by BlackRock and its peers. Bitcoin is no longer a fringe asset: it becomes a legitimate asset class in diversified portfolios of wealthy clients.

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