Bank of America Endorses Bitcoin: Advisors Can Now Allocate 1–4% to Crypto
Wall Street’s cautious embrace of Bitcoin hits a milestone—Bank of America just gave its wealth managers the greenlight for crypto exposure. Here’s why it matters.
The 1–4% Nod: After years of sidelining Bitcoin, BofA’s move signals institutional acceptance—with guardrails. Advisors can now recommend allocations up to 4%, framing crypto as 'high-risk, high-reward' rather than a fringe gamble.
Timing Is Everything: The policy shift drops as Bitcoin flirts with record highs—because nothing accelerates Wall Street’s FOMO like a chart screaming 'ATH.'
The Fine Print: Clients must pass a 'suitability review' (translation: prove they can stomach 80% drawdowns without suing). Bonus jab: A bank that once called crypto 'rat poison' now sells it as 'portfolio seasoning.'
Bottom line: When legacy finance starts hedging with decentralization, the game’s changed—whether purists like it or not.
The New Law Of Investing In BTC
The update on X was posted by Hunter Horsley, the CEO of Bitwise. He wrote that BOA has included the Bitwise bitcoin ETF (BITB) on its approved list of products. Horsely added that this is an important move towards crypto adoption in the mainstream.
Chief Investment Officer Chris Hyzy explained the move. He said that BOA chose regulated ETFs since it wanted to maintain prudent allocation in managing risk. He emphasized that BTC has some peculiarities that should be learned.
New Crypto Exposure for Affluent Clients
The approved ETFs will be made available to clients beginning on January 5. The products are BITB, FBTC, BTC, and IBIT, each includes custody, monitoring, and transparent charges.
Advisors are now able to add Bitcoin to their portfolio strategies and can provide rich households with a regulated crypto exposure.
Other top banks may also follow the lead of the BOA and implement a similar crypto strategy. Bitcoin funds have been receiving steady inflows, and institutions are still investing in Bitcoin using regulated vehicles.
High ETF Demand Shows Increased Investor Interest
This trend is reinforced by new ETF data. Data at SoSoValue has indicated massive funds FLOW into the top Bitcoin ETFs on December 2.
BlackRock’s IBIT had the biggest inflow at about $120 million, while the Fidelity FBTC recorded almost $22 million. Bitwise’s BITB attracted $7.44 million in new demand.
Conversely, ARKB by Ark 21Shares incurred a drastic withdrawal of $90.94 million. Other issuers such as Franklin, Valkyrie, and VanEck recorded zero flows.
Hence, the total net inflows in all spot BTC ETFs in the U.S. for December 2 amounted to almost $59 million. This influx follows a rise in high-volume activity at the end of November and since the start of December.
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