Bank of America Greenlights Bitcoin ETF Investments for Wealth Clients, Permits Up to 4% Portfolio Allocation

Wall Street's old guard just handed its richest clients a golden ticket to crypto's main stage.

Bank of America—the titan of traditional finance—has quietly opened the floodgates. Its wealth management division now permits qualified clients to funnel up to 4% of their portfolio into spot Bitcoin ETFs. No more side-door crypto exchanges or complex self-custody. This is Bitcoin, served on a silver platter, inside the same accounts that hold their blue-chip stocks and municipal bonds.

The 4% Nod: More Than a Toe in the Water

That number—4%—isn't random. It's a calculated, institutional-grade endorsement. For a bank that once viewed crypto as a speculative nuisance, allocating a single-digit percentage is a seismic shift. It signals to the entire wealth management industry that Bitcoin has graduated from a fringe asset to a legitimate portfolio diversifier. The message is clear: ignore this at your own risk.

Wealth Management's New Playbook

Forget mining rigs and seed phrases. Advisors can now execute Bitcoin exposure with a simple ticker symbol. This move bypasses years of client frustration and regulatory hand-wringing, offering a clean, familiar, and reportable path into digital assets. It's finance's ultimate irony: using the system's own tools to buy into the asset that was built to circumvent it.

The Ripple Effect Across Finance

Bank of America isn't acting in a vacuum. This decision pressures every major wirehouse and private bank to formalize their own crypto policies or risk losing assets. When one of the 'too big to fail' banks moves, the rest of the herd typically follows—albeit with the cautious enthusiasm of a committee deciding on a new brand of office coffee.

The Final Tally

This isn't just about allocation percentages. It's a fundamental rewiring of wealth management's DNA. The gatekeepers of capital are now the distributors. The 4% cap may seem conservative, but it's a Trojan horse. Once the infrastructure is in place and the first wave of allocations performs, that number has only one direction to go: up. The old world of finance has finally decided to buy a seat at the new table—and they're using your money to do it.

TLDR

• Bank of America wealth management clients can now allocate 1-4% of portfolios to crypto through four bitcoin ETFs starting January 5
• The bank will cover Bitwise, Fidelity, Grayscale, and BlackRock bitcoin ETFs through its Merrill and Private Bank platforms
• Previously, wealthy clients could only access crypto products upon request without adviser recommendations
• Other major banks like Morgan Stanley recommend 2-4% allocation while BlackRock suggests 1-2% and Fidelity recommends 2-5%
• Bitcoin has dropped roughly one-third from its October high above $126,000 to around $85,000 as of early December

Bank of America has announced that its wealth management clients can now invest in crypto through four Bitcoin exchange-traded funds. The bank recommends allocating between 1% and 4% of portfolios to digital assets.

BIG BANK JUST OPENED THE DOORS TO CRYPTO

Bank of America — one of the largest banks in the U.S. with nearly $2.9 trillion in assets under management — is now telling its wealth clients they can allocate up to 4% of their portfolio into crypto. That’s not small-time financial… pic.twitter.com/Ii3vUj3w9H

— CryptosRus (@CryptosR_Us) December 2, 2025

The new guidance applies to clients using Merrill, Bank of America Private Bank, and Merrill Edge platforms. Starting January 5, investment strategists will begin covering four bitcoin ETFs.

The covered products include the Bitwise Bitcoin ETF, Fidelity’s Wise Origin Bitcoin Fund, Grayscale’s Bitcoin Mini Trust, and BlackRock’s iShares Bitcoin Trust. These ETFs will be available through the bank’s network of over 15,000 wealth advisers.

Chris Hyzy, chief investment officer at Bank of America Private Bank, said the allocation is appropriate for investors comfortable with elevated volatility. The guidance emphasizes regulated vehicles and a clear understanding of risks.

Before this change, wealthy clients could only access crypto products upon request. Advisers could not recommend crypto exposure directly to clients.

Nancy Fahmy, head of Bank of America’s investment solutions group, said the update reflects growing client demand for digital assets. The move represents a shift in how traditional banks approach cryptocurrency investments.

Following Industry Trend

Bank of America joins other major financial institutions offering crypto investment guidance. Morgan Stanley’s global investment committee suggested a 2-4% portfolio allocation to crypto in October.

BlackRock recommended a 1-2% bitcoin allocation at the start of 2025. Fidelity Investments suggested 2-5% in March 2024, with 7.5% for investors age 30 and below.

Vanguard will begin allowing some crypto ETFs and mutual funds on its platform starting December 3. Morgan Stanley, Charles Schwab, Fidelity Investments, and JPMorgan Chase already permit customers to invest in certain crypto ETFs.

Several banks are expanding beyond ETF offerings. Fintech bank SoFi began rolling out direct crypto trading to retail customers a month ago.

Charles Schwab, Morgan Stanley, and regional lender PNC are expected to offer direct crypto trading soon. Many US banks are waiting for Congress to pass legislation that WOULD establish a regulatory framework for the crypto market.

Regulatory Environment Changes

The TRUMP administration has reversed several Biden-era crypto policies this year. Regulators removed guidance barriers that prevented banks from offering various crypto activities.

JPMorgan Chase’s wealth management division has not issued official crypto guidance to its 5,900 advisers. However, the bank has allowed Chase credit card customers to fund accounts with crypto exchange Coinbase Global since fall.

The regulatory shift has turned many Wall Street firms and investors bullish on crypto. However, the crypto market has experienced volatility in recent weeks.

Bitcoin reached an all-time high above $126,000 in early October. As of early December, the price has fallen roughly one-third to around $85,000.

Year to date, bitcoin is down about 10% while the S&P 500 is up over 15% this year.